Re: 1960 40 HP.
If you've got the two tube water pump (and you ought to) then you can use the 33hp gearcase ('65-'71) although if it comes with a water pump it'll be useless. You could also use a '71-'73 40hp gearcase I believe with the same reservation.
I would not use a '50s era gearcase nor the 28hp one, as these have weaker internal bearing arrangements.
I see a couple of these on ebay right now. Use these search terms:
(40, 40hp, 33, 33hp) (Evinrude, Johnson) (lower unit, gearcase, "gear case")
The $50 estate sale one looks very tempting. The $150 one has got a frost crack. It won't affect it but it is a defect that will need repair. The $300 one is too much money.