PO installed mystery capacitor?

[Frank_Zappa]

Hi Guys. I have my aux. battery tray out for rust treatment and I found that the PO had installed what looks like a capacitor on the blue wire that comes out of the voltage regulator. Does anyone know why or what purpose it might serve and if I could remove it from the wiring harness without messing anything up? It is the object in the fingers of my left hand that has a connector showing that the blue wire has broken away from. Thanks. Oh yeah this is on my 1971 K20 P/U.