MARTIN, C. J.
The case was submitted to the circuit court on a stipulation of facts which shows:
Prior to May 1, 1958, the state of Wisconsin, by its highway commission, contracted with the Mashuda Companies for the construction and improvement of a highway in Columbia county. Among other things, the contract provided that the Mashuda Companies should pay all claims for labor and materials for the performance of the contract, as required by sec. 289.16, Stats...
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