After studying the problem I discovered the problem is that the standard
OS X NTP configuration does not free run well at all so all the machines
I was pointing at my OS X machines had 127.127.1.0 (local clock) at a
high enough stratum that they totally rejected the OS X NTP servers.
I believe that this is actually correct behavior for NTP local clock;
mobo clocks are pretty unreliable (high drift rates), so you want any
NTP server offering local clock only to be high stratum so that it will
get ignored in favor of better clock sources when available.
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