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The classes were first introduced I believe in 1924. Due to the rapid acceleration of interest in the US for outboard racing, the APBA raced to set the rules.
Class A : Under 12 cubic inches (200cc)
Class B : 12 to 17 cubic inches (200cc to 280 cc)
Class C : 17 to 30 cubic inches (280 cc to 500 cc)
Class D : 30 and over (500 cc to …….)
Now, fast forward to 1927. The latest Johnson P-35 Big Twin was stepped up to 8hp, and new speed records were being broken weekly. The records were in the 32 mph range at this time.
The Big Twins were so hot, and selling so well, this is when the brand new factory at Waukegan, Illinois was opened.
Evinrude tried to keep up, by taking the powerhead of his Light Twin, and fitting it to the leg and lower unit that was more advanced, creating the 7hp Elto Speedster. It couldn’t keep up with the Johnson Big Twin though.
So, for 1928, Ole and Ralph created Americas first four cylinder, 2 cycle outboard by mounting one powerhead on top of another, and called her the Quad. The Quad had 40 cubic inches, and was about 18hp. This new monster allowed boats to reach the 40mph mark!
So then, the APBA decided to refine the racing rules, engine class limits, divisions for amateurs and free for all classes, stock motor definition, approved course lengths, and methods for starting and timing.
The new classes were as follows:
Class A: <14 cu/in=<250 cc = 6-10hp
Class B: <20 cu/in=<350cc = 12-15hp
Class C: <30 cu/in = <500cc = 18-22hp
Class D: <40 cu/in = <650cc = 25-30hp
Class E: <50 cu/in = <850cc = 30-35hp
Class F: <60 cu/in = <1000cc = 36-40hp
Under these rules, better, organized races and mile trials took place.
For those interested in this era of racing, I highly recommend "A Century of Outboard Racing", by Kevin Desmond.