There are a few bikes that can't (or shouldn't) be towed with a front-wheel carrier: the CB750 is one of those. The GT380/550/750 is OK, and if the front wheel is at least 8" off the ground, the CB350/400 SOHC4 is also OK. The issue with the 750 is that the bearing at the front sprocket (final drive shaft) is not lubed unless the engine is running. This caused some CB750s to utterly fail their final-drive bearings after being pulled around the country with those, as the final drive gets no oiling unless the engine is running.
Honda eventually changed the final drive bearing to a dual-row type to capture some oil in it while running, so it could be towed a little bit without troubles. I've replaced a number of final-drive bearings, both single and double row, accompanied with worn chains and sprockets (back in the day), on 750s that had less than 3000 miles on them, all from this issue.
BTW: whomever told you to remove the drive chain for towing the water buffalo was wrong. We sold those to guys who wanted a 750 but were going to tow it around like that. It worked fine, as its oil-filled gearbox was spin-oiled by any moving shaft inside it.