Well, Russ, having spent 3 seasons with the Colorado Central Narrow Gauge Railroad/Georgetown Loop #40 (now at the CRRM), I can tell you that you can not fire an oil burner on a substantial grade without emitting a fairly strong "haze" from the stack. If you try to run with a clear stack such as that shown in your photo, you will be stopping somewhere on the hill to blow up steam. At the CRRM, the coal-burning #318 emits (IMHO) less visible smoke when burning the coal from the King mine at Hesperus than the #40 on oil, unless you are actively bailing coal into the #318's firebox or are moving away from a station stop. In years past the CRRM's neighbors have complained to the county health department about the smoke. We excuse ourselves in the name of history.
PS. Have you checked out modern diesel locomotives lately? They emit virtually no visible smoke, and when Tier III emissions rules kick in, those locomotives' exhaust will be as clear as modern diesel trucks, thanks to urea exhaust fluid injection. No emissions systems are required for steam locomotives--yet.
Mike