Hydraulic fluid in oil

I have hydraulic fluid going into oil and then being expelled thru oil breather tube. I haven't had this machine long it seemed to be losing a lot of hydraulic fluid. I just pulled the skid panel and started it to see where it was leaking and it was coming out of the oil breather tube. I thought it would be a hose but I found something I wasn't expecting. I don't know where to start to find the problem. I welcome any suggestions. Thanks

Hydraulic fluid in oil