Sounds to me like your tractor is assembled wrong or something is out of place. Get a manual and read it, or find another tractor and look at it. The half moon arm should not move freely with the tractor not running. Your problem must be in the governer, maybe the wrong part installed or badly worn. Remember the basics, the natural butterfly position is wide open (pulled by the spring), the action of the weights tries to close it, and pressure from the throttle lever pulls on the spring to make it more difficult for the weights to close the butterfly thus the engine runs faster before centrifugal force of the weights can close the butterfly at higher throttle settings. The half moon arm is always pulling against the spring unless it is in the idle position whether the weights are fighting it or not. If your arm is loose, something seems misplaced. Down on the arm is faster speed, up is idle. After re-reading your post: make certain the governer weights push the slider to push the bearing against the arm to CLOSE the butterfly as the weights are moved away from the shaft. When you push down on the linkage under the angle cap you should feel the spring pushing back since you are slowing the engine and the weights will reduce their action to counteract the spring. If all else fails, the governer slides straight to the rear after you remove the mounting bolts. The gear is a bevel gear (the teeth are angled) so the gear will have to turn a little to remove the governer but that is only a problem when the governer is frozen up. Yours should come out easily. Any governer from a gas or LP H, Super H, 300, M, Super M, 400, W-4, Super W-4, W-6, Super W-6, etc. will fit if you have a salvage nearby. Diesels are different. The housing on top that holds the angled cap is shorter on the H, 4 and 300 but yours will fit it, and the 300 and 400 have a different arm than the half moon so you have to change that out but otherwise they switch like a charm. Since you can't move the half moon arm when the tractor is running, that is where you should start. Without the spring installed, and the butterfly wide open before you crank it, as soon as it starts the weights should snap the butterfly tight and probably kill the engine. You might try that. That reminds me, I have seen a governer so worn that the weights rub on the shaft from the half moon. I guess it is possible they are catching on that shaft and not pushing on the bearing at all, that would give the symptoms you describe. So before you start the engine, with the spring off, make sure you can move the weights by hand and close the butterfly by spreading the weights. If not, you have to figure out what is keeping the weights from actuating the butterfly. Keep posting!
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