This is not a requirement, but is done as a courtesy to the catcher. The umpire can also take this opportunity to talk to the catcher and not make it seem obvious.
This practice was started many years ago, to be honest, so that the umpire would not show their rear end to the fans primarily behind home plate.
Most conversations between the umpire and the catcher occur while both are facing the pitcher (toward centerfield)..that way no fan can see either player or umpire's face, read lips or even tell that an umpire and catcher are talking.
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it depends on the decade. If you are talking about the early underhand pitch decades then they stood off to one side behind home plate. If you are talking 1880's then as catchers equipment improved they moved closer to the catcher. check out www.vintagebaseballherald.com and you can see some pics of vintage umpires in recreation games.
There are 4 umpires in a regular season baseball game. They are situation behind home plate and the 3 bases. During end-of-year playoff series and the World Series, 2 additional umpires are added to cover the foul lines behind 1st and 3rd bases. All games have an official scorer role as well, although technically considered an umpire.
Umpires are always check how many baseballs they have, and never let it get below 3. They will get replenished by a batboy or other appointed person.
There was an episode of "Dirty Jobs" on the Discover Chanel about this. It is not the umpire that does it. It is a person that works for the home team of any given game. It is a very particular type of natural mud but i do not remember where it comes from. I have heard they prepare about 60 balls per game.
The pointed end of a home plate faces the rear, away from the playing field. The home plate itself if in fair territory.