too much current flowing thru that connection (dead short or too high of draw downstream on the device end) and or a loose terminal male/female fit. I would get a new female one NAPA 725145 99 cents & before you insert it into the bakelite trial fit it in your hand on the male one there in the bakelite for a snug fit (lightly bend the curved edges as (if) needed). Some kopperkoat (sp) or similar conductivity paste wouldn't hurt. Make sure you do a good solder/crimp on the terminal to the wire & pull the lock tab out a bit from "flush" so it locks in place with a resounding snap as you pull the wire/terminal backwards into the bakelite holder. EDIT after looking at the pic again you may have to lengthen the wire on one side to make the male/female connection away from that severley damaged area. No big deal, with a good crimp/good soldering/good tight "fit" of the brass terminals together you will be fine on that part anyhow IF there is NO excessive draw but I am leaning toward just the bad terminal interface being the issue (loose/poor connection there where it overheated).