Lancaster Co. Nat. Bank's Appeal

Opinion by

Mr. Justice Simpson,

The state highway department advertised for bids to construct a portion of the work on State Highway Route No. 280, at Chickies Creek in Lancaster County. Paul H. Sheirich, Inc., hereinafter called the contractor, was the lowest bidder, and, on being so advised, applied to the American Surety Company, appellee herein, to give the required security, agreeing that, if it did, it should, in case of default, be subrogated to the contractor’s rights, so far as concerned payments to be made under the contract. The Act of May 16, 1921, P. L. 650 (amending section 13 of…