What Jim is looking for is oil flow when the valves are not activated... The tractor has a closed center hydraulic system.. so when no functions are being activated, there should be no flow to return.
Two or three issues he is looking for with the loader valve.
1, that its set up as a closed center valve. (mostly like its not an open center valve because other SCV and hitch functions would not work correctly.) (Usually there is a plug or fitting to change them from Open to closed center.)
2. Many of the loader valves have an internal relief valve, if this relief is set lower than the system pressure, then there will be a constant flow of oil through this relief valve. It will need to be set higher.. (adjusted, shimmed or removed.)
3. Just leaking spool valves, causing oil flowing to return.
I think the others have drilled you on what needs to be corrected.. The T fitting or a ported oil filter cover.
This should increase the time that the loader will function with the pedal pushed in.. but you were right, you were loosing oil flow.
Good Luck
This post was edited by JDGnut at 19:20:38 06/30/14.
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