U.S. Presidential Limousine Flag - President Dwight D. Eisenhower.
This is an extremely rare, nylon, combination appliqué and embroidered, 49 star U.S. Presidential Automobile Flag. It was official for just a year between 4 July 1959 and 3 July 1960. It was a transitional flag made for period between the 48 to the 50 star versions.
This 49 star flag was used only during the administration of President Dwight D. Eisenhower. 
It is a smaller version of the Presidential color and was displayed on a vehicle carrying the President of the United States. Contrasting royal standards used in monarchies, this flag identifies the current office holder, in this case President Eisenhower. Presidential stars with 49 stars are exceedingly rare as few were made; according to US Government records the order for the 50 star versions was placed on August of 1959.
They are also hard to identify an often confused with their longer lived 48 star and 50 star counter parts. This flag has been offered at auction twice as a President John F. Kennedy flag. However, it is identical to a flag on the U.S. Army Quartermaster Museum, # QMR-478, which is cataloged as being made in 1958, made undoubtedly in anticipation of the statehood of Alaska and used until statehood of Hawaii made it obsolete. Surviving 49 star presidential flags reveal that very no complete 49 star flags were ever embroidered; the three known embroidered versions were converted from 48 star presidential parade and auto flags by sewing a ring of 49 embroidered stars onto per-existing flags. The flags like this example represent a "field expedient" solution to the need for the short lived 49 star flag.
This flag also departs from the appliqué (see ZFC2581) or embroidered versions (see ZFC2500) of the Presidential Automobile Flag. 

This flag was acquired at auction from American Political Items Collectors national president and leading Kennedy specialist Christopher Hearn, who had in turn acquired it from the estate of Major Anthony S. Suglia, who served as a military aide to three presidents in Eisenhower, Kennedy and Johnson. 


ZFC Significant Flag
Provenance:
• Flag made by U.S. Army Quartermaster dept, circa 1958.
• Used by President Dwight D, Eisenhower Administration, 1959.
• Acquired by Major Anthony S. Suglia, presidential aide.
• Major Anthony S. Suglia Collection until 1999.
• By descent in the Suglia family until 2005.
• Sold via Leland's Auctions, Bohemia, NY to Christopher Hearn, Leesburg, Virginia, 2005.
• Christopher Hearn Collection, until 2010.
• Sold via Heritage Auctions, Dallas Texas to Zaricor Flag Collection, 2010.
Sources:
Flag of the President of the United States, Wikipedia, 25 October 2011, from: http://en.wikipedia.org/wiki/Flag_of_the_President_of_the_United_States
Patterson, Richard, Richardson Dougall, The Eagle and The Shield, Department of State, Washington, 1976.
History of the President's Flag, Sea Flags, 1 October 2011, from: http://mysite.verizon.net/vzeohzt4/Seaflags/personal/potus.html#top
Image Credits:
Zaricor Flag Collection
xyz
Top100
ZFCPOTUS