The inlet filter-line goes into the upper right fitting on the canister. This fitting it often "teed" at the block or at the filter canister, for attachment of the oil pressure line.

The outlet filter-line goes into the bottom of the filter canister. In some older AC canisters, and in some Fram canisters, the outlet line is on the lower side of the canister (rather than at the bottom).

Here is a picture of line locations on a '54 235 block:

http://home.nycap.rr.com/lederman/images/blockoil.jpg

Here is a picture of a '54 AC canister:

http://home.nycap.rr.com/lederman/images/54oilfilter.jpg

In case you are interested, the colors on the canister are correct for 1954 - sometime earlier the colors were different and Fram colors were different.

Tim