LM317 PSU - Huge voltage drop
You are probably dissipating too much power in the regulator and sending it into thermal shutdown.

Input voltage of 37.4V - 12V output gives 25.4V across the regulator.  27.4V * 130ma load gives you  3.3 Watts power dissipated in the regulator.  The LM317 in a bare TO-220KCT package has a thermal junction-to-ambient resistance of about 38 degrees C per Watt -- in this case that gives you a junction temperature of 125 degrees above ambient.  Assuming a 20 deg C room temp, the junction will be around 145 degrees C.  This is getting really close to the absolute maximum junction temperature (150C), and well over the recommended max of 125C.  Depending on airflow, thermal connection to the leads, etc, the junction temp could easily be high enough to cause thermal overload shutdown.

Use an adequate heatsink.