A hydraulic system for a material handling vehicle that has body and a carriage for carrying a load being transported, said hydraulic system comprising: a hydraulic cylinder and ram assembly operatively connected to raise and lower the carriage with respect to the body and having a cylinder port; a reservoir; a pump operatively connected to draw fluid from the reservoir and provide the fluid under pressure to an pump outlet, the pump operable as a hydraulic motor; a proportional first valve that is electrically operated and that selectively controls a first path through which fluid flows between the pump outlet and the cylinder port; a proportional return valve that is electrically operated and that selectively controls a second path through which fluid flows between the cylinder port and the reservoir bypassing the pump; a speed sensor that detects a speed of the hydraulic motor; wherein the hydraulic system operates in a plurality of modes to lower the carriage comprising: (a) a first mode in which the return valve is closed and the first valve is open to direct fluid to flow from the cylinder port into the pump outlet, thereby operating the pump as the hydraulic motor; (b) a second mode in which the return valve is open to direct fluid to flow through the second path from the cylinder port to the reservoir, and in which the first valve is open to direct fluid to flow from the cylinder port into the pump outlet, thereby operating the pump as the hydraulic motor, wherein an apportionment of flow through the first valve and the return valve is controlled in response to the speed of the hydraulic motor. a hydraulic cylinder and ram assembly operatively connected to raise and lower the carriage with respect to the body and having a cylinder port; a reservoir; a pump operatively connected to draw fluid from the reservoir and provide the fluid under pressure to an pump outlet, the pump operable as a hydraulic motor; a proportional first valve that is electrically operated and that selectively controls a first path through which fluid flows between the pump outlet and the cylinder port; a proportional return valve that is electrically operated and that selectively controls a second path through which fluid flows between the cylinder port and the reservoir bypassing the pump; a speed sensor that detects a speed of the hydraulic motor; wherein the hydraulic system operates in a plurality of modes to lower the carriage comprising: (a) a first mode in which the return valve is closed and the first valve is open to direct fluid to flow from the cylinder port into the pump outlet, thereby operating the pump as the hydraulic motor; (b) a second mode in which the return valve is open to direct fluid to flow through the second path from the cylinder port to the reservoir, and in which the first valve is open to direct fluid to flow from the cylinder port into the pump outlet, thereby operating the pump as the hydraulic motor, wherein an apportionment of flow through the first valve and the return valve is controlled in response to the speed of the hydraulic motor. (a) a first mode in which the return valve is closed and the first valve is open to direct fluid to flow from the cylinder port into the pump outlet, thereby operating the pump as the hydraulic motor; (b) a second mode in which the return valve is open to direct fluid to flow through the second path from the cylinder port to the reservoir, and in which the first valve is open to direct fluid to flow from the cylinder port into the pump outlet, thereby operating the pump as the hydraulic motor, wherein an apportionment of flow through the first valve and the return valve is controlled in response to the speed of the hydraulic motor.