Yes, this is a way to find how far the C of G is from the front of the Locomotive. But it does not fully locate the C of G, as you also need to know the height and whether it is bang on the centre line or how far to which side. And the figures will all change when fuel or water is added or used. The device which measures the applied load needs to be zero-ed, and it helps to fix a fulcrum below the beam so that no errors can be added when the relative positions are changed (but I expect you knew that).
The C ofG position will also change whenever the locomotive accelerates or slows down, and also when it is on a gradient up or down, or going round a bend, because of the effect these changes have on the fluid levels and fuel position, so there is very little benefit from a calculation to three places of decimals.
Hope this helps
Regards, Tim