Hi John,
The axle pump should have a ball seating above and below the ram. In effect they are 2 check valves as part of the pump body.
I always test check valves quite rigorously.
As John Baguley suggests, yours may not be seating properly. It is also possible the boiler check valve is not seating properly (the water in the side tanks will heat up quite a lot if this happens).
It would not take much for the valves not to seat on a new loco – a bit of swarf or muck.
Another possibility (which is quite common) is for the bottom axlepump check valve to 'stick' especially if no 'U' bend incorporated. This isnt the case in your's as you have observed the bypass flow.
There may also be some restriction somewhere? Perhaps a pipe bent and kinked, or a nipple onto a pipe on the delivery side partly blocked with silver solder? Or perhaps there is a restiction in the water supply to the axlepump somewhere.
The Tich axlepump, if made to the drawings has not been commented upon, to the best of my knowledge, as being other than very effective.
I would disconnect the boiler feed pipe from the boiler check valve, and run the chassis on air with the bypass closed and trying to stop the flow from the pipe. The water should squirt a considerable distance.
Cheers,
Julian