Pete,
On a lot of early lathes, that is how they came from the factory, purely for that purpose.
There is a problem with these early lathes. As the tailstock wears, they get what is called a droop snoot, where the ram starts to hang low the further it protrudes from the main casting, so if you set your tooling with the ram even partially extended, it would be set too low.
The other problem with the tailstock marking system is that most times, the ram can rotate a little in it's housing, so rendering the height marking useless, it could be almost anywhere.
Problems, problems problems

Bogs