Newtothis said...
. . . bottom is flush with thin plastc covering . . .
. . . what looks like hose in the slot . . .
This sound like the daggerboard system I had with an F2 Lightning Race board aeons ago.
On both sides of the daggerboard casing there was a bolt encased in plastic tubing. When you wind down each bolt, the tubing distorts (ie gets wider) and therefore creates more friction on the sides of the daggerboard. You want to be able to adjust the daggerboard position with your foot whilst sailing. There should be enough friction to hold the daggerboard where
you want it to be; too little and it will move by itself, too much and you can't adjust it.
Drop the daggerboard down for slow sailing and going upwind. Fold it right up for hooning along. The plastic covering on the bottom is to stop you getting an unwanted enema.

If the tubing needs replacing, I am sure that you could get some at an auto parts shop.
Be cautious when making adjustments to these older fittings. It has been my experience that the plastic in them gets very brittle.