Hi Jerry, is your engine a full pressure oiler? sounds like the same set up as the 216 the oil line runs from the right side of the engine block through the water jacket up behind the pushrod cover, it then goes through the head and should be attached to a brass fitting via a compression joint which it attached to the rocker shaft, its purpose is to oil the rocker gear I would deffinately replace/repair, kits are available good luck

Ken

Its not the size of the dog in the fight its the fight in the dog!