The brown gear oil could indicate its been sitting
a long time as it hasn’t been available for decades.
The compressing readings are also an indicator that
it could be a low hour’s motor that has spent most
of its life just sitting. How does it look cosmetically?
Still sitting takes its toll. Coils may have disintegrated
explaining your loss of spark. You could have one of
2 magnetos. Coils are no longer available for either
but later ones can be substituted with a little effort.
Coils aren’t expensive. As low as $15.00 each. The
impeller should be checked. Its most likely has
taken a set and could just break apart if you were to
use it. I know they are available for $50.00. You may
be able to find one for less. Then there is the crankshaft
and gear case seals. Is the motor worth it? I have a
1953 Mark 7. As I understand it, it’s just a later version
of your KE 4. It had a 1959 Ohio registration tag on it.
I believe that was the last time it was run. I put OMC
style coils in it, crankshaft seals, and found an
NOS impeller for $40.00. Its doing 19 + mph in the
video. It sounds like its doing 100. It hit 20 occasionally.
It adds up but I believe what I put in this motor was well
worth it. If it wouldn’t be worth that to you pass it on.
Somebody surely would like to have it.
Tubs
https://youtu.be/rXy43dZuPNg
https://youtu.be/OxPHe8EPe1Q
A "Boathouse Repair" is one thats done without having tools or the skills to do it properly.