My new winchester 1895 Flatside I got for 100$

If you can find a good welder, you may be able to mig or tig both those dovetails and recut at the correct position. You'll need a welder that knows what he's doing and be able to control the heat.
That was my first thought as well but then, considered the location, I would cut both dovetails off and re-crown (like someone else suggested). Only lose maybe an inch of barrel and a much better solution IMO. Often, it will be impossible to re-blue and NOT see where the welds are. Different alloys colour differently so it will always have a “mottled” look at the welds. If it was a rear dovetail issue, I would not hesitate to weld and dress then recut as you suggested.
 
You might be able to get another barrel for it, it would probably be cheaper than fixing what’s going on with it now. There are plenty of old 1895 barrels kicking around, you could probably even convert it to 30-06 or .303 fairly easily if you wanted it to be a real easy shooter.
 
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