Linseed oil, or oil from the seed of the flax plant, when raw, has a lot of water in it. Most of the time when you find it at the store it has been boiled expelling most of the water making it a better wood preservative. If allowed to dry over time it will produce a hard finish. I used it to protect the inside of some cedar boxes I made for my wife for her garden. Those boxes are filled with dirt and they haven't rotted after 2 years (although they do have a few termites in them, but not too many!). I've never used it in boat building and only would worry about the interface between the rails and the boat. I guess you could use bedding compound to seat them?
Howard I didn't know the Indians used mineral spirits?
Ed.