Look on the top of your differential housing. There is a little spring loaded cap, this is a vent to keep the differential from pressurizing as it gets hot & causing a seal to weep. There was likely a similar vent cap on the top of the tranny that someone has removed & replaced with a hose. It's not uncommon to extend these vents upwards to prevent water entering should the vehicle ford deep water.
_________________ '78 Chevy LUV,1.9,4sp,headers,31's,SAS Dana 30,Dana 20,SOA rear w/Aussie Locker, rough body, bought new 12/4/78. '87 Trooper,2.3,5sp,headers,31's,ball joint flip & spacer,Aussie Locker rear,Superwinch hubs,brush guard w/5.5K winch,more to come.
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