Oil Leaking from pipe? of Generator

I am piecing together a 1968 XLCH that I picked up over the winter.
I just about have everything hooked up where it ought to go.

One of the last things I did was hook up the "empty" oil tank.

I started cranking on it - just to check out compression - and I started to have a little bit of oil coming out of a pipe from the generator.

Oil tank is still empty.
When I first goy the bike a few months ago, I squirted a few spoonful of 10w30 in both cylinders because the bike had been sitting quite a few years-just to loosen things up a bit.

Does this sound normal? I know to expect some oil dripping from places on these older ironheads - this just seemed a bit unusual.

Thanks for ant thoughts.

DVDLLN

that pipe is the crankcase vent you probably have oil in the crankcase from sitting