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KG4,
First I see no support for the plug wires & the flywheel hardware should be tightened using the correct tool as we all know a untorqued flywheel breeds trouble from being too tight or not tight enough. Next I see the throttle linkage missing & set up for racing. Not a problem until starting at full advance timing. Those points need to be cleaned up with a wire wheel, then 1000 wet & dry to get a nice finish & check that old cap too. I bet it is junk under test load being 50 something years old.
Also watch your dwell setting thru out the full throttle range. You might find the gap may change around 60 degrees from wide open. Be sure to set the two screws behind the flywheel at 50% throttle& recheck the dwell. If it shows wear set at full throttle & retry again as a last resort. E-mail me if you want at jeff.50@cox.net. for tuning.
Best of luck,
Jeff