	Further expansions to Lian were also considered, but management was skeptical at having two destinations, since they would not create the necessary critical mass. Then the tavern and farm at Ugla burnt down in 1931, and the insurance company allowed the insurance money to be used for building at Lian. To finance the line extension, Graakalbanen decided to create a new company; A/S Ugla–Lian was organized in such a way that it would have no expenses, only income. A/S Ugla–Lian would build the line, and Graakalbanen would pay NOK 0.05 per passenger freighted on the line. Graakalbanen would cover all operating, maintenance and administrative expenses, even for the other company. Construction of the expansion was started in the autumn of 1932. The first test run was on 29 September 1933, and the line was taken into use on 28 October 1933. A number of recreational services grew up at Lian, including a ski jump and trotting in the winter, and bathing and rowing in the lake Lianvannet in the winter. Despite this, ridership grew slowly, but by 1937 it had passed the 1930-level.