When the district was divided in 1846, Lauenburg became the capital of a new district ("Landkreis Lauenburg i. Pom."). Lauenburg began to develop as an industrial center after its 1852 connection to the Prussian Eastern Railway to Danzig and Stettin (Szczecin). In 1866, the Masonic Lodge was formed, whose membership was in the main made up of the elite entrepreneurial class. The building survives to this day. The town became part of the German Empire in 1871 during the unification of Germany. Chancellor Otto Fürst von Bismarck (1815–1898) was made an honorary citizen in 1874. New German settlers came to the town, but Poles also still settled there. Despite Germanisation policies, the Polish-Kashubian movement developed. Helpful in preserving Polish culture and identity was the local Catholic church, in which Polish language lessons were still organized.