I believe that is just a vent so that when the fluid warms up(and expands) the air has a way of getting out and not building up pressure. From a design stand point I would guess that the bend in the tube is just so that debris from the road-water, dirt, etc- cant get in throught the vent.
Some one will correct me if I'm wrong I'm sure.
Also glad to be back on this sight. Haven't visited for about 2 years but glad to see it's still up and running. Hopefully my 71 Demon will also be soon.
-Alex