Reply to Old Magnet:
The pinion seal is your most likely candidate. Oil getting past the crankshaft seal (gear end) would be indicated by high oil level in the pinion compartment if the pinion seal was ok. The crankshaft seal (gear end) came on the scene at sn 4G5916.
Thanks for all your advice fellows. It seems Old Magnet got to the point in that there should be a seal at the gear end of the crankshaft the same as there is at the flywheel beginning with serial 4G5916.
Some time ago I had the pony on my RD4 serial 4G5460 open to repair a broken drive gear which caused a bent magneto shaft all due to a loose flywheel, all of which caused me to obtain the machine. Anyway there was no seal in that pony so I thought there would be none in this either and that sure had me puzzled about what to do with an otherwise good engine.
It is sure good to have a group of fellows like you to discuss issues with.
Thank you, Suomalainen (Finlander)