You're getting fluid in the carb because you've got an intake valve open somewhere along the line. Nothing out of order with that.
If the fluid is draining down out of all the cylinders, that would suggest stuck but broken rings. It can drain through the gaps in the broken rings, but those rings are still bonded tightly enough to the cylinder walls to bind you up.
ATF works when it has a chance to soak. If it is draining out that quickly, you're not gonna make much progress by pouring more in.
You may have to bite the bullet and at least pull the head for a looksee or (more likely -- sorry!)pull the whole engine and break her loose and clean her up.
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Today's Featured Article - Gatherin of the Orange - by Rick Nikolich. In July of 1998 I was talking to fellow Allis Chalmers collector Mike Schilling about the annual "Gathering of The Orange" AC show coming up in August of 1999. He got this wild idea that we should get a convoy of AC tractors and drive them from Charlotte, Michigan 105 miles to LaGrange, Indiana.
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