I'm rethinking... Fret slot position is based on the scale length, that is: nut to bridge. Let's forget about compensation on the bridge end for now. So: you've got all the frets in the right position. Then someone comes along and says: let's shorten the scale length. We'll do this by cutting off the fingerboard on the bridge side of the slot in question and then we'll butt a nut up to that side of the former slot. You can move the bridge toward the new nut end of the fingerboard so that the new 12th fret noted and the 12th fret harmonic are the same note, but all the other frets are going to be a little bit off. This is because all the slots are based on a scale length based on what was the "center" of the slot you just cut off. It's not the same and so to make things right (this is really getting anal) you have to get the strings in the new nut to leave on their journey not where the nut meets the board, but a little back toward the tuners. Does this make sense?
Working on intonation on a banjo?.....
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