Diesel Bombers - How is this supposed to be?

Hey Fellas. I just bought a 2004 Ram 2500. The last guy did all kinds of weird stuff to this truck. It has a brand new motor in it (Cummins of course). There is a crankcase air filter on the top of the motor under the beauty cover that has two hoses that come out of it. The big one that comes out the back of the filter was smoking. Looked like blow-by to me, but its a brand new motor. He ran this hose into the air filter air box. Problem is, there is so much oily smoke coming out of this hose, oil collects at the bottom of the air box and is now dripping on the ground. My question is: where is this hose supposed to go? Why would smoke be coming out of it? Where should both of these hoses go? Thanks in advance!