Adams, Max Rosenn, and Hunter, Circuit Judges.
JAMES HUNTER, III, Circuit Judge.
Appellant Ruth S. Weisenfeld brought this action under Section 205(g) of the Social Security Act, 42 U.S.C. § 405(g), to review a final decision of the Secretary of Health, Education, and Welfare to impose deductions against her widow's insurance benefits for the year 1967. In the District Court the facts were stipulated and both parties moved for summary judgment. The Government's motion was granted, and Mrs. Weisenfeld appeals.
There is no dispute that Mrs. Weisenfeld became entitled to widow's insurance benefits in January 1966. See Social Security Act, § 202(e), 42 U.S.C. § 402(e). Our sole concern is whether the Secretary was correct in imposing deductions.
The stipulated facts show that in 1967 Mrs. Weisenfeld held 25 percent of the stock in both of two family corporations which owned real estate leased to commercial tenants. Her mother and sister held the remaining stock. Mrs. Weisenfeld was Secretary and a director of both corporations. Her duties, which consumed only three or four hours per month, were to sign leases, attend directors' meetings, and deposit checks. The management of day-to-day corporate business was the responsibility of Mrs. Weisenfeld's son.
For the years 1966 and 1967, Mrs. Weisenfeld's income from the corporations consisted of the following:
Secretary's salaries $1500 None
Director's fees $3000 $1500
In essence, the Secretary's imposition of deductions is based upon a finding that the dividends paid in 1967 were disguised salary or fees.
The Secretary's power to impose deductions against Social Security benefits stems from Section 203(b) of the Social Security Act, 42 U.S.C. § 403(b). Deductions are allowed:
"on the basis of such individual's wages and self-employment income . . . if . . . he is charged with excess earnings, under the provisions of ...