Hi Mosey,
This is the method put forth by Connelly.
I test bar is installed between centers. One in the HS and one in the TS.
The test bar should be straight, round, and of a constant diameter
It is assumed with this technique that the TS is positioned to turn straight. If an indicator mounted to the carriage and positioned at center height and traversed along the side of the bar show's taper, adjust the TS so that it indicates that the bar is parallel with the travel of the saddle.
With that done
The dial indicator is then put on the carriage, and set to touch the top of the bar exactly on center. Move the indicator to the HS side and zero the indicator. Now move the saddle all the way to the tailstock side. Rise or fall will be determined directly from the reading.
For toolroom lathes up to 12" swing, the tolerance is 0- .0008" high at the tailstock......
Hope that helps Mosey!
Dave