Given what you have said so far, like others have said too,it sounds like the blower drive shaft may have sheared off. I've seen it happen numerous times over the years on customers machines. Like you say you were told happened, they just shut down when the shaft shears because no air can get to into the cylinder without the blower turning. As for trying to start it with ether, if the blower isn't turning then neither the air nor the ether is getting to the cylinder so it can't fire and does absolutely nothing.
That said how do you know for sure there is no emergency shutoff flap on this engine? Do you know what to look for and where to look to tell it's absolutely not there without removing anything. Given it's location there's not really any way to do it without taking enough intake piping off to see wether this feature is there or not. If you do that, you should be able to see the lobes of the blower to tell if they are turning or not. That said, the flap is made into the housing bolted to the side of the blower that takes the rectangular opening of the blower to a round flange. There is then a thin plate with a gasket on each side(one having a coarse screen in it) between the housing and the blower. The flap thenseats/ seals against that plate when it's actuated. I've seen engines where the seal plate is left out making the flap pretty well usless but I've never seen one with the flaps absolutely not there because of the way the whole flap and housing piece of assembled. Like I said if you've got the piping off to the point you can say flap or no flap, you should be able to see if the blower lobes are moving when the engine turns over. In other words if the flap is tripped all you'll see a flat plate. If that's the case there will be a rod sticking out the lower side of the housing with a little lever attached and a spring loaded lock that keeps it latched. If the flap is not tripped you should see the blower lobes behind a mesh screen.
Regardless of wether it has the emergency shutdown flap or not the symptoms you are describing are very typical of exactly what everyone is saying and that is no air/or ether, is getting into the cylinder. To me the fact it won't fire on ether is what leads me to that conclusion as to the problem over anything to do with the fuel rack........other than it being unhooked. Ultimately it sounds like you need someone that knows something ab out the Detroits to give it a once over to both get it running and then to make sure everything is adjusted right given the governor linkage being unhooked, etc, as that all has to be right for the engine to run like it should. Good luck. Wayne
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