I have the same bike, 1973, and I ride it about once a month from Orlando to Tampa, about 100 each way, and I get about 48 - 50 miles per gallon. This is even at 8 - 9 grand. I'm no mech, but I think something is off on your bike.
It's a great little bike. In fact, my dad bought the bike in Northern Indiana and rode it down to Orlando. He said he was cruising around 8 to 9 grand the whole way down. I love the bike. It's my daily rider. It sure beats my 23 mpg truck. Thought 23 mpg for an '88 Toyota pickup is pretty good.
Hope you enjoy riding your 350.
Craig II
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