Just succumbed in a moment of mental weakness by adopting a 1958 TO-35 with the 23 C diesel. Its' retirement job will be in keeping horse paddocks mowed, I guess this is being put "usefully out to pasture".
As posted 2 days ago, I have tracked the fluid leak, appears to be engine oil, that is in the area of the fuel injection drive pump as being the o-ring for the shaft shown in the pictures that I posted earlier, thankfully with generous member help.
Still believe the "pushing" of oil from the dipstick tube is compression ring blow bye but will take the advice given of pulling the fuel tank, rocker box cover and verifying that crankcase vent line run is clear, and oil returns from top end are also clear.
Will be picking the tractor up after turn of the month, but have a question, The trans/hydraulic fluid was changed very recently, and before any start up was clear and up to full. Hydraulics function very well, good solid movement up and down,no jerkyness, and will hold in the up position until released even with engine off.
Question: after running for about 1/2 hour and exercising all systems and driving around at various speeds and turn radius, again checked the Trans/Hydraulic fluid and found that it had evidence of emulsified water, the fluid had gone from very light tan to milky white.
The boots for both shift and range levers are old but flexible and with no tears, holes or such and fit snugly around their respective bases.
Any other points that water might enter from???
Thoughts and suggestions welcome, and yes as wisely noted by others I have purchased the shop repair manuals, original and IT types, plus the TO-35 Diesel owners manual, for reading before the adopted one arrives.