It's been a few years, but I have definite info on this part. Fitz was right. The engine on my 49 Streamliner is being rebuilt. The photos below show what it looked like when removed from the engine. It is a "headbolt heater". It was electric and would heat up when plugged in. I found an article about the inventor of the device. It was produced by Five Star Manufacturing in East Fargo, Minnesota. My car spent part of its life in Minnesota, so this heater was probably put to good use.
Here's part of an on-line article about the heater and it's inventor:
Freeman concluded that he needed a way to get heat directly to the water in the engine block. He discovered that in most cars the headbolts extended directly into the water. After much experimentation over a period of three years, Freeman developed a system that transmitted electricity via a brass tube through a replaced headbolt into the water. The electric lead extended from the heater through the radiator grill to the outlet.
In 1947, with two colleagues, Freeman formed the Five Star Manufacturing Company of East Grand Forks to manufacture headbolt heaters. The company did not do well at first, not least because there was a manufacturing error in the first 25,000 heaters. But soon the product was refined and the manufacturing process mechanized until the company was turning out 200,000 heaters a year for sale in the United States and Canada. Altogether Freeman estimates that he sold as many as two million headbolt heaters.