The story goes that Watt was working with ponies lifting coal at a coal mine, and he wanted a way to talk about the power available from one of these animals. He found that, on average, a mine pony could do 22,000 foot-pounds of work in a minute. He then increased that number by 50 percent and pegged the measurement of horsepower at 33,000 foot-pounds of work in one minute. It is that arbitrary unit of measure that has made its way down through the centuries and now appears on your car, your lawn mower, your chain saw and even in some cases your vacuum cleaner!
What horsepower means is this: In Watt's judgement, one horse can do 33,000 foot-pounds of work every minute. So, imagine a horse raising coal out of a coal mine as shown above. A horse exerting 1 horsepower can raise 330 pounds of coal 100 feet in a minute, or 33 pounds of coal 1,000 feet in one minute, or 1,000 pounds 33 feet in one minute. You can make up whatever combination of feet and pounds you like. As long as the product is 33,000 foot-pounds in one minute, you have a horsepower.
http://www.howstuffworks.com/horsepower1.htm
