It sounds as if you have the
Shop manual. The later 235s and 261s use a different method for getting oil to the rocker arms than was used for the previous two decades. Most (nearly all) of my direct experience has been with the 1954 and earlier 235s and 261s. On the earlier engines, the overflow tube just dumped the excess oil back into the top of the head.
However, as I now have a 1961 261 that I will be soon rebuilding, I have been closely following all of the posts concerning the later rocker arm oiling questions, and there have been a lot of them, both here and on the Inliner's site.
As Tommy said, if you see oil coming out of the hole at the top of each rocker arm, all is probably ok. I would also be concerned about that one push rod appearing to be too long, as it appears that that valve may be at the end of its adjustment.
Hoyt
