OCTOBER TERM, 1960.
Opinion of the Court.
364 U. S.
interpretive process of inclusion and exclusion, it is
imperative that generalizations, based on and qualified by
the concrete situations that gave rise to them, must not
be applied out of context in disregard of variant controlling facts. Thus, a correct reading of the seemingly
unconfined dicta of Hunter and kindred cases is not that
the, State has plenary power to manipulate in every conceivable way, for every conceivable purpose, the affairs of
its municipal corporations, but rather that the State's
authority is unrestrained by the particular prohibitions
of the Constitution considered in those cases.
The Hurter opinion itself intimates that a state legislature may not be omnipotent even as to the disposition of
some types of property owned by municipal corporations,
207 U. S., at 178-181. Further, other cases in this Court
have refused to allow a State to abolish a municipality,
or alter its boundaries, or merge it with another city,
without preserving to the creditors of the old city some
effective recourse for the collection of debts owed them.
Shapleigh v. San Angelo, 167 U. S. 646; Mobile v. Watson,
116 U. S. 289; Mount Pleasant v. Beckwith, 100 U. S.
514; Broughton v. Pensacola,93 U. S. 266. For example,
in.Mobile v. Watson the Court said:
"Where the resource for the payment of the bonds
of a municipal corporation is the power of taxation
existing when the bonds were issued, any law which
withdraws or limits the taxing power and leaves no
adequate means for the payment of the bonds is forbidden by the Constitution of the United States, and
is null and void." Mobile v. Watson, supra, 116
U. S., at 305.
This line of authority conclusively.shows that the Court
has never acknowledged that the States have power to
do as they will with municipal cotporations regardless of
consequences. Legislative control of municipalities, no
less than other state power, lies within the scope of rele-