For sure the cap needs to be able to breathe. The level in the tank has to go up and down as the cylinders work.
It may simply be over filled.
Or the tank may be too small.
With the loader raised all the way, and the curl cylinder fully extended, how low is the oil level in the tank? Is it so low that the pump begins to suck air? Is the return flow foamy with air?
If it is, the tank is too small, or possibly the suction screen (if equipped) is clogged or the pick up is too far off the bottom.
If the oil is frothy with air, that will raise the level and cause the overflow. Air can also get in from a leak in the suction line to the pump.
Lots of variables here, and are you sure both pumps operate the loader? Possibly the PTO pump is for another attachment, maybe it had a hoe at one time.
But, whatever is happening, the tank needs a breathable cap. The object is to let the tank breathe air in and out, but exclude dirt and water.
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Today's Featured Article - Old Time Threshing - by Anthony West. A lovely harvest evening late September 1947, I was a school boy, like all school boys I loved harvest time. The golden corn ripens well and early, the stoking, stacking,.... the drawing in with the tractors and trailers and a few buck rakes thrown in, and possibly a heavy horse. It would be a great day for the collies and the terrier dogs, rats and mice would be at the bottom of the stacks so the dogs, would have a busy time hunting and killing, all the corn was gathered and ricked in what we c
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