Re: '74 70hp burped and then died
The gearcase has two seals at the drive shaft, back-to-back; one keeps water out, the other keeps oil in. It's possible that one of the seals has failed. I'd think about pressure-testing the lower unit. Pump it up to about 12 PSI, see if holds for 5 or 8 minutes.
About the solenoid: for your compression test, you want to disable spark because you don't want to leave the spark plug leads open; one way to do that is to leave the key in the off position and jumper the solenoid. Another way is to pull the emergency lanyard (your motor wasn't factory-equipped with one, but a you or prior owner might've added one) and just use the key normally. Another choice would be to use jumper wires to ground the plug leads to the engine block.
Solenoid has two large terminals: the positive battery cable connects to one, and the other leads to the starter motor, and two small terminals: a black ground wire, and a red wire that provides 12V from the keyswitch. If you touch one end of a jumper wire to the battery cable terminal and the other to that small 12V terminal, it energizes the solenoid just as if you turned the key to start. Might spark just a little. Be careful not to connect that battery cable to the engine block, you'd get a huge shower of sparks.
If talkin bout boats is a waste of time, then I'm in big trouble........
