The way that works is the "S" wire goes through those two holes. When you push the horn button the tip of the "S" wire makes contact with the copper strip at the top of the mast jacket bushing (may be a bearing on a '40). At the same time the edge of the "S" wire contacts the side of the hole(s) completing the circuit and making the horn honk.

I don't see any missing parts (assuming your mast jacket bushing is in place). I say that understanding that my '38s construction is a bit different from your '40 in that the "S" wire on mine goes through the steering wheel itself. I'm not sure how the chrome piece you show connects to the mast jacket/steering wheel.

Last edited by Tiny; 10/04/2010 2:32 PM.

Save a life, adopt a senior shelter pet.
The three main causes of blindness: Cataracts, Politics, Religion.
Name your dog Naked so you can walk Naked in the park.