The oil tank vented into the atmosphere in the earlier models, with a separate hose that exited between the engine and the rear wheel. The oil tank vent was positioned at the top of the tank, not the bottom, obviously...........
The bottom hose is a crankcase breather that vents back into the oil tank, not the other way around, but some oil from the "oil mist" ran back and splashed into the oiler tray. The chain oiler worked primarily on oil splashing into the tray (inverted in Dreams's pics) and running out the hollow output shaft.
If this hose was only required to provide oil feed back to the chain oiler, then why was it increased in size when the chain oiler was deleted? By the way, the fitting for the chain oiler splash tray was retained in the later models crankcase castings, the only change to the internal crankcase venting was the larger diameter breather pipe. Cheers, Terry.