M/T them old engines had a small cup there where he attached the tube, they had a steel wool type of filter, that you where suppose to clean once and a while. It was mostly meant to relive back pressure, but moister seemed to get the oil Rosado up and and seep out. Then they went to valve tappet cover venting, same thing there, you will always find excess goo on front of these small engines, unless you have really bad rings for ingress back pressure, I don't think there is chance of getting oil up and over his engine, let alone to the bearings.
That Brings up another subject OIL. These engines and most before 1995 are flat tappet, even cars, they took out the ZING additive that lubed these engine. Up until now I have been running Lucas breaking oil and STP in my oil for additive, I belong to
https://www.casecoltingersoll.com// and there are some engineers on there, that have directed me to Diesel motor oil, that has the ZING in it. So now I just get 15-40 full synthetic Rotella. And if you are worried about cost you can run it for 2,3 years before changing...............Curt