While a great deal of historical literature has concentrated on the effects of industrialization on town development, most of the accounts relate to the introduction of industrialization into an established town. This study attempts to analyze, in sociological terms, the effects of industrialization (in this case, the emergence of the railroad) on the social structure of Denison, Texas which was created by industrialization. It is an attempt to combine Marxian and Weberian theory to produce a multi-dimensional theory that can explain town development without the usual economic bias as evident in most contemporary theory. This study proceeds on the assumption that the social order of a newly formed community is not based solely on economic factors. While economic considerations were important for the town of the study, social stability of the town was maintained by other “non-economic” elements. The purpose of the study is to construct a composite theory that can be utilized to analyze town development. The thrust is not the creation of new theory, rather it attempts to combine existing “classical” theories to present a balanced and, to an extent, “objective” explanation of community development. Adding the social aspects of Weber's theory to Marx's theory results in a theory that limits the economic bias associated with pure Marxian theory.