Thanks to chessie41 I stumbled upon why the Mikado was having smoke problems. chessie41 told me that the pplastic dropper supplied with the Lion Chief plus Mikado was for putting the fluid into the smoke generator!

Lionel does not identify the eyedropper in the Mikado manual. They just say use 4 drops of smoke fluid? Well there's four drops and there's four drops.
What volumn are we talking about. I use a oiler as a smoke fluid container. It gives pretty small drops. Where if you use the supplied eyedropper to provide
four drops your getting allot more smoke fluid. 

I went to the Local train store to see if they had Lionel smoke fluid. They are really an HO store but they do handle some O Gauge. I bought two other brands of smoke fluid. They didn't have any Lionel smoke fluid. The Model Power fluid is allot thinner than the MTH fluid. Anyway, I used the supplied Lionel eyedropper to put four drops of Model Power smoke fluid in the Mikado. Then a added four more. Gave it a little while for the fluid to drain down into the smoke generator. Then I started up the Mikado.. She started giving lots of smoke.

So the real problem was I was not supplying enough smoke fluid to the new Mikado. I'm use to MTH RailKing motive power sense the 1990's. The little oiler work fine for them but not the Lionel!

jack