I think the "raise rule" is applying to industrialization, is this WAD? In a test game I took Wilmington NC, Fredricksburg VA, and Nashville TN with USA and Columbus OH and Pittsburg PA with CSA.
Industrialization would only happen in areas were the loyalty is 25% or higher. Not only did no builds happen over 20 turns with Heavy emphasis, but every turn I would have to "reorder" on the economics tab in states that had no citys that qualify. I.E. NC and TN for USA (MO builds only happened in St. Josephs) and PA for CSA. Also with the CSA owning Dayton, Columbus, and Sandusky OH they do not have the option to industrialize at all.
All cities have 100% MC to controling sides.
And on another note I think the Loyalty increase form Police is broken. From what I understand loyalty should increase by the highest police value any 1 element has located in the region. In Wilmington NC my units have been there over 10 turns and Loyalty is at 4% with the Light Inf Police value of 2. I ran turns with him in and outside the city.