I have a 67 Midget with 1275cc engine, #12cc-DA-H-3374. There is a breather hose on intake manifold, but no crankcase outlet on the timing cover, or on the valve cover. What is the proper or correct configuration for this engine? or should I worry about it? Any help is appreciated.

The 67 12cc engine should have the timing cover with an oil separator on it (the snoot) and the intake should have a Smiths PCV valve that looks like a pancake.
If you can source a valve cover with a vent tube on it, it will work just fine in place of the timing cover. Easier to replace the VC over the TC.