How can you read a file line by line in JavaScript?

This could work, if I understood what you want to do:

var txtFile = new XMLHttpRequest();
txtFile.open("GET", "http://website.com/file.txt", true);
txtFile.onreadystatechange = function()
{
  if (txtFile.readyState === 4) {  // document is ready to parse.
    if (txtFile.status === 200) {  // file is found
      allText = txtFile.responseText; 
      lines = txtFile.responseText.split("\n");
    }
  }
}
txtFile.send(null);