Re: 1959 Johnson 35hp needs help!

[Don]

Elliot
I surely understand your desire to rejuvenate the engine/boat/truck that provided so much joy when you were younger. Hopefully, a local member will respond to your post. for now, perhaps you can try to free the engine up, like Cajun says. I’m not sure how much mechanical experience you have, but I think we can help you at least get the engine freed up and drain the gear lube to inspect it. If the engine is still on the boat, try to tilt it up to the most horizontal position possible. Now, remove the spark plugs and fill those cylinders with some sort of penetrating oil/auto tranny fluid, pour plenty of it into each plug hole, then reinstall the spark plugs.
While the cylinders are soaking, it would be a good idea to drain the gearcase lube. You will find two large drain/vent screws, both must be removed. DO NOT remove that Philips head screw that is on the lower skeg, that is the shift linkage pivot screw, removing it will cause the linkage to come apart inside the gearcase! One of the fill/vent screws is right above the horizontal plate just above the propeller, the other one is hidden on the bottom of the leading edge of the gearcase bullet. Remove both of the fill/vent screws and watch what drains into the pan.
Dark/black looking fluid is just old, but probably OK
Milky colored thick goo usually indicates a water leak into the gearcase
Raw water indicates definite water leaks and internal problems from rusted parts
If nothing comes out when both plugs are removed, somehow all the fluid has leaked out indicating bad seals/orings (unless someone drained the fluid intentionally as some sort of mis guided storage procedure.
Once the cylinders have soaked for a few days, you can attempt to rock that flywheel back and forth slightly with a large screwdriver against the flywheel ring gear. Report back to us with your progress, so we can get a better idea if the engine can be brought back to life without too much expense/trouble.
Unfortunately, you will be hard pressed to find a professional mechanic/boatyard willing to look at your engine, most of the guys probably have never worked on an older engine like yours anyway. Most labor rates are closing in on $100/hr these days, so spending a couple of hours on your engine would exceed its value.