Doug, Does your pictured original contact set include a plastic sleeve??? According to the parts books, that earlier design original contact came with a separate plastic sleeve (like the bit surrounding the metal parts in the other contact you have), but it has a smaller diameter to the sleeve than that reproduction/replacement contact. GM# 759230 is the separate "plastic sleeve" for your old contact and should slide right into the existing steering wheel hole. I think that being absent is what's causing your horn to sound as the old contact isn't held in place correctly to prevent ground contact.
~ Dan 1951 Chevy 3 window 3100 Follow this story in the DITY Gallery "My Grandpa Carl's Truck and How it Became Mine" 1966 Chevelle (Wife's Hot Rod) | 2013 Chevy Silverado (Current daily driver) US Army MSG Retired (1977-1998) | Com Fac Maint Lead Tech Retired (1998-2021)