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From the 1920s, the rise of automobile travel and the concurrent construction of bridges and tunnels across the river sent the H&M into an financial decline from which it never recovered, and it was forced into bankruptcy in 1954.As part of the deal that cleared the way for the construction of the original World Trade Center, the Port Authority bought the H&M out of receivership in 1962 and renamed it PATH.There were early negotiations for New York Penn Station to also be shared by the two railroads.When the rapid transit commissioners approved construction of the H&M's Sixth Avenue line in 1904, they left open the option of digging an east-west crosstown line.

The Midtown Manhattan line would travel eastward under Christopher Street before turning northeastward under Sixth Avenue, then continue underneath Sixth Avenue to a terminus at 33rd Street.A stop at Summit Avenue (now Journal Square), located between Grove Street and Manhattan Transfer, opened in April 1912 as an infill station on the Newark-Hudson Terminal line, though only one platform was in use at the time.The station was completed by February 1913, allowing service from 33rd Street to terminate there.and the 23rd Street–Hudson Terminal line was rerouted to Grove Street, becoming part of the current Journal Square–33rd Street line.A fourth line, Grove Street–Hudson Terminal (now the Newark–World Trade Center line), was also created.

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