Larry and some of the others know more about this conversion than I do, this was my first, but I will tell you what I have learned. The Saganaw steering systems in the 50 series Olivers are known for leaking and bad steering. Since the company is long out of business the parts for these units are hard to find, and even if you do find the parts the unit is a bear to rebuild and does not hold up well once rebuilt. So the modification to fix this is to put a new Char Lynn steering motor in instead. I got this one from Surplus Center. This is what Oliver used in the later 50 series and most of the 55 series tractors. Problem is trying to get all this behind the dash and still keep the tilt steering. So what I did is take the back off the old unit with the tilt part still on it, and modify some brackets to hold the new unit in its place. Not a bad conversion and I have a better steering unit. You are correct, these units work kinda like a hydraulic cylinder, you turn to the left the fluid goes out of this steering motor and into the steering cylinder out front and moves the cylinder to steer the tractor. The steering motor has fluid running through all the time and only uses fluid when you move the steering wheel. It is really neat how it all works, as long as it does not leak :-)
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