340 steering gear issue

I have replaced the seal below the shim where the upper column assembly fastens to the housing assembly. I was having an issue with fluid coming up the column and going out under the steering wheel. I thought replacing the seal would fix this. I also installed the shim between the shaft and seal even though there was no ware on the steering shaft. What other things could cause this?
 
What was the condition of the seal surface where the seal runs on the shaft?

Sometimes if water has accumulated inside the steering housing tube, the shaft will be rust pitted and need a Speedy Sleeve for the seal to run on.
 
The shaft was the same diameter in that spot as it was above and below. But where I bought the part they told me I may need to install the shim if it keeps leaking so I did and it still didn’t stop the leak.
 

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