Indicator in the chuck is a good way of indicating the tailstock spindle in. Another way which can give pretty close results is to put a very sharp tipped center into both the headstock's spindle hole and the tailstock's spindle hole(most call it the ram). Then,bring the 2 centers nose to nose and look straight down on them with a magnifying glass to see if they line up perfectly. BEST LOCK the tailstock down and lock the ram,too before doing this.
You can also check from the side view to see if they are at the same height. The tailstock may be low if it is worn. You can shim between the tailstock and its base casting. The tailstock ram must be parallel to the lathe bed for this to work,so run an indicator along the top of the ram by sliding the tailstock beneath it. Keep shimming till the tailstock ram is both at the right height,and parallel to the bed. Can be a vexing job,but needs to be done.
If you are careful and use a magnifying glass,you can get the tailstock to within .001" doing this.