I was just curious about it being like an Oliver, my remarks about problem applied to tractors in general.
Back to the problem: Some tractors have a spring that keeps the lever in the proper position. If this spring is broken it may lift the arms, I had that happen on a much later model Long. I don't know how that system is on your tractor. Maybe this is called the detent spring? You said you took apart the valve, maybe the spring was already broken and you didn't notice it. I can't see the relief valve causing the problem, but I'm no expert. If you could see a parts breakdown it might help.
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Today's Featured Article - Upgrading an Oliver Super 55 Electrical System - by Dennis Hawkins. My old Oliver Super 55 has been just sitting and rusting for several years now. I really hate to see a good tractor being treated that way, but not being able to start it without a 30 minute point filing ritual every time contributed to its demise. If it would just start when I turn the key, then I would use it more often. In addition to a bad case of old age, most of the tractor's original electrical system was simply too unreliable to keep. The main focus of this page is to show how I upgr
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