No, it won't leak somewhere else unless there is a problem.
What you're getting is just "splash" from the oil returning to the reservoir as it circulates. It has to turn a corner there and the oil goes both directions.
Just replace that cap with a regular old black iron 3/4" pipe cap. The bolt jammed in there isn't sealing.
Like everyone else has said, that is exactly how it's supposed to be except for the leaky vent on the cap.
You can make another rod for originality's sake, but there is nothing wrong with it the way it is.
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Today's Featured Article - Hydraulic Basics - Part 2 - by Curtis Von Fange. In the last entry to this series we gave a brief overview of hydraulic system theory, its basic components and how it works. Now lets take a look at some general maintenance tips that will keep our system operating to its fullest potential. The two biggest enemies to a hydraulic system are dirt and water. Dirt can score the insides of cylinders, spool valves and pumps. Wate
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