I believe putting oil directly into the boilerwater, only makes some real sense when it is a tinboiler, as an attempt to form a thin oil film in there, to make them last a bit longer before rusting out.
Only have two Weedens here, both with brass boilers, and their instruction does not have the oil in the boiler recommendation.
Here they´re oiled by gently tilting the cylinder, to apply some oil inbetween that and the steamchest, a couple of drops on the pistonrod when fully extended, and a few drops sucked in via the exhaust.
Just the info I was looking for, thank you Sir. I had not thought about the oil in boiler water helping to prevent rust on the tin boiler but it makes sense. It is actually the tin boiler that keeps me from wanting to purchase this engine, all though I must say it's in remarkable good condition, I suspect it was almost never fired or has been restored or both.