Peter Chinn commenced testing engines for the British magazine “Model Aircraft” in about 1949. The earliest test by Chinn that I have is #5 in the July 1949 issue. Previously, these tests were conducted by L. H. Sparey, and he used a "stroboscope" to check an engines RPM. By 1951 however, a nifty hand held tach made by Smiths Instruments was available, reading from 0 to 20,000 RPM. For measuring torque, Sparey used a home made “torque reaction balance” and a photo of this device can be seen on the heading of this article here –
http://sceptreflight.com/Model%20Engine%20Tests/Buzzard%202.8.htmlIt’s reasonable to assume that Chinn also would have used some sort of similar workshop made device, as there would have been no commercially made units that small. In his tests, Chinn often refers to a “torque-reaction dynamometer” but doesn’t elaborate on the details.
In an article published in August 1952, Chinn states that “B.H.P. or brake-horsepower, is the power developed by an engine as measured with suitable apparatus, such as a friction brake or reaction dynamometer. B.H.P. is the difference between the indicated horsepower (i.h.p.) or power developed within the engine before accounting for mechanical losses, and the f.h.p., or frictional-horsepower, and is thus the actual power available at the crankshaft.”
By mid 1954, the other great British tester of model engines (Ron Warring) was using an eddy-current dynamometer, but as it says in the article (link below) Chinn and Warring held their cards close to their chest, and in fact, disagreed on some aspects of calculating output.
http://www.modelenginenews.org/techniques/testing.html