That "valve thingy" is the hot water shut off valve used on the deluxe heater in '61 and all of the '62 car heaters. The "H" pipe shown in Robert's photo near the inner fender is a balance tube that relieves pressure on the hot water valve when it is in the closed position, allowing the coolant flow to recirculate and bypass the heater core. I have seen many of these balance tubes removed from the system, probably because they were rotted and leaked.