wp_set_object_terms problem

I’m using custom taxonomies to create a taxonomy called ‘catalog’. In this I’m programmically inserting the terms. The terms do not show up in the admin unless I edit the terms manually in the admin.

This also affects the end user when going to website.com/catalog/{term name goes here} when it has no items in it (child terms may have items in them). It gives me a 404 error. As soon as I edit the terms in the admin manually there is no more 404 error issue.

example code of what I’m using:
$category = array(‘one’,’two’,’three’,’four’);

foreach ( $category as $cat )
{
$categoryname[] = get_term( $cat, ‘catalog’ );
}
foreach ( $categoryname as $cat )
{
$term_id = wp_set_object_terms( $postID, $cat->slug, ‘catalog’, false );
}

Screen grab of admin showing problem. Notice drop down list has all items, but list does not.

https://i30.tinypic.com/s49nav.jpg