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Perhaps a bigger hammer.

Oh so typical of the damage.----Just need a new bearing plate.----That shaft will last another 36 years I think.

Can not hear it run on an engine stand ?-----But you can hear it rattle on a boat ?----What kind of boat ?

Often you have to go up first to get clearance for that to go out of the way.-----Or maybe the trim limit switch is the issue.-----Seems strange that it would lock up in storage.

How about ---" jewelers rouge "-------Or my favourite for stainless material.-----Diamond polishing compound rubbed in with soft ladies underwear.------Usually get a chuckle when I mention to use that.

Get the right parts !-----Not automotive.----Hopefully you have not damaged any other parts with your experimenting.

It will run better than a new motor.

In the above picture , what manual is that from ?

Install new reeds.

Install a new impeller.-----Change gear oil.-----Then see if oil injection is hooked up or bypassed.------Run at 50:1 and verify oil injection is working before running straight fuel.

Need to get a wiring diagram for the 3 wire system.----Solenoid is not wired correctly now.

Correct the solenoid is only used to go UP.-----Try hooking motor wires directly to battery , black to 12 volt negative blue to positive.----Does trim motor operate ?

Installing a new impeller every 3 years is one good step to take.----Resealing the gearcase is also one good step to make the 50 year old motor live a long happy life.

When those have water in the gearcase in freezing climates you get ice.----There is a snap ring in a groove and the pressure pops the housing right there because it is the weakest point.-----New / used gearcase is the fix.

I do believe there is a plug on older 4 cylinder 50 HP models.----Find it on the water cover near sparkplugs.---Remove and install tubing for water pressure.

If the motor will not turn then likely you need to overhaul the pivot tube on the motor.----Likely lots of corrosion that needs to be cleaned up.----Can be frustrating work.----Salt water I assume.-----Regular greasing / inspection is a must.

Agreed with the above post.------I am too far away likely.----Have many of those shock absorbers.-----Just find yourself a good used one and assemble it.----Likely to need a good inspection of that upper bearing plate as stated.

I think you can find that kit on AMAZON for $ 12.98

Most 60 HP motors have a battery charging system on them.-----Look for it.----Or check voltage at the battery with motor stopped and running at a fast idle.

Take lower unit apart use 1/4" threaded rod.---Use 1/4 nut with corners rounded off and pull the bushing out.------Or run a 5/16 -NC tap in there and pull the bushing out with 5/16 threaded rod.