Unfortunately, there were a bunch of features removed by the developers of Nautilus with version 3.6, which is included by default in Ubuntu 13.04. Among those was the "compact view". Now only the regular icon view and the list view are available. To my knowledge there is no way to re-enable it, short of changing the code and compiling Nautilus yourself (well beyond my own ability).
The "bug" showing where compact mode was removed
Discussion on the GNOME mailing list
One way to get the feature back is to downgrade Nautilus. The easiest way to do so is to add a PPA managed by webupd8.org, which will install a patched version of the older Nautilus 3.4.
Run these commands in a terminal:
sudo add-apt-repository ppa:webupd8team/experiments
sudo apt-get update
sudo apt-get dist-upgrade
For a full description of the patched version (and how to remove it), see here:
N.B.: The instructions contain a warning, namely that if the dist-upgrade command attempts to remove packages, there is a problem and you should not continue. Otherwise things should be fine.