OK I'll take a stab at this. It seems the oil seperator is connected to carburetors through a breather control valve. If that is not working then you would have a problem. I, also, remember on early American cars that the separator is filled with steel wool. I have not looked in the shop to see what a Midget has in it but you may need to cleand out the sepatator so it will function correctly. Look to see if there is a controll valve first and then if it is operating correctly. There are excellent digrams and photos in several of my manuals under emission controls.