I have come across numerous instances of this practice in New England. It is most definately true. Also, when the elder of the name died, the younger dropped "Jr." altogether, or in turn became "Sr." if there was a younger person with that name in town. I have come across instances where there were 4 or 5 men of the same name in one town. You will probably find them to be "Sr.," "Jr.," "3rd," etc., although sometime "1st" and "2nd." When one of them died, the references shifted accordingly. So John Briggs "3rd" would become "2nd" or "Jr." if the next older John Briggs died. This is found in deed and probate records, at least.
Doug