If you have the trans out of the car i would bolt the converter up to the engine and put an indicator on to the pump drive and take reading that way. Being a machinest for over 50 yrs. a lot of 3 jaw chucks run out them selves some as much as .010. I would think if the hub locator is in fact running out .035 it could damage the pump bushing and possibly the pump it's self, plus it's almost certain to leak on the front seal. If it is in fact running out the only fix would be to turn down the crank locator and put a thin sleeve on it.
JMO
Zip.