That water just accumulated from condensation, the crankcase being vented to the outside allowing air exchange.
Being stored outside makes it a little worse because of wider swings in temperature.
The relatively large interior volume makes it more susceptible to this phenomenon.
Earlier this year I drained nearly two gallons of water out of an H that came from East Texas, a rather humid place itself. Two days later it was running well. Of course I dropped the oil pan and cleaned it up first.
That old detroit should be ok. Make sure the injector rack is free before starting as a "runaway" is your biggest threat. Have something handy to cover the intake with just in case.
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Today's Featured Article - Harvestin Corn in Southern Wisconsin: The Early Years - by Pat Browning. In this area of Wisconsin, most crops are raised to support livestock production or dairy herds in various forms. Corn products were harvested for grain, and for ensilage (we always just called it 'silage'). Silo Filling Time On dairy farms back in the 30's and into the first half of the 40's, making of corn silage was done with horses pulling a corn binder producing tied bundles of fresh, sweet-smelling corn plants, nice green leaves with ear; the
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