Yes it did. Mine is that way, but it is prone to foaming and continuous flow would probably do it in at some point. I have seen where several people have used the return at the bottom technique and it seems okay as well. I now have a separate 3 spool valve with a filter right after that on the way back to the tank.
For crawlers IH actually just recirculated the oil directly back to the pump. They use a check valve arrangement to keep the lines filled from the reservoir. (Crawlers need to work on steep inclines) Gets just a little warm but these pumps aren't fast enough to worry about heat. If the crawler doesn't heat up with a 82 GPM pump, a 12 GPM SMD is good to go.
If you do run a T down below, have the return line go straight through towards the pump.
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Today's Featured Article - Identifying Tractor Noises - by Curtis Von Fange. Listening To Your Tractor : Part 3 - In this series we are continuing to learn the fine art of listening to our tractor in hopes of keeping it running longer. One particularly important facet is to hear and identify the particular noises that our
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