Ken- The SA hub has only sheet metal labyrinth dust caps. So oil seepage is common. But water can get in especially if the hub isn't fed the few drops of oil every so often it wants. As long as you're willing to clean up the mess you could just over oil the hub and work it until the oil that seeped out was no longer rusty.
Next is to pull the guts out of the shell and actually look at the internals. Then if really rusty take it all apart or rebuild the wheel with a better hub. While not a "profitable in season" repair job to have to do, Dale might be someone I'd call if you want it rebuilt. Or contact me off list.
These hubs are very durable if not abused. Kept lubed, bearings & chain set a tad loose and no load shifting makes Sturmey a happy Archer.
> Hi list members,
>
> This Raleigh Sport bike, a low end, almost to the weight limit to be a
> light weight for C-R selection.
>
> It came with S/A 3 speed rear hub, which is stamped 74 6, June of 1974
> production I suppose.
>
> It has an oil inlet, so I poured 10-40W motor oil, guessing good enough to
> help lubrication after
> those years, but soon after, reddish brown (by rust?) oil came out
> dripping
> as much I put in.
>
> Is there an oil seal failed due to its age? I remember 40+ years ago,
> some bike shop overhauling
> those 3 speed hubs. Or at least reinstall oil seal so that it can hold
> lubricant inside.
>
> I would appreciate if any member who is an expert on this type of hub give
> me directions.
>
> Regards,
>
> KEN TODA, High Point, NC
> _______________________________________________
Andrew R Stewart
Rochester, NY