<PAGE>   1

EXHIBIT 19.1

To Our Shareholders:

     The comparative results of operations of Chicago Rivet & Machine Co. for
the first quarter of 1999 and 1998 are summarized below.

     Results for the first quarter of 1999 were excellent. Driven by continued
strength in the automotive industry, the net sales and lease revenues increased
to $12,517,480 during the quarter, compared with $11,672,949 recorded during the
first quarter of 1998. All of the increase is attributable to the fastener
segment of our operations, where revenues increased 10.6% to $9,737,327 compared
with $8,800,610 during the same period in 1998. Revenues within the assembly
equipment segment declined slightly to $2,780,153 in the first quarter of 1999,
compared to $2,872,339 during the first quarter of 1998.

     Net income improved significantly, amounting to $1,152,460 or $1.00 per
share on 1,153,496 average shares outstanding during the quarter, compared with
$914,820, or $.78 per share on 1,169,100 average shares outstanding during the
first quarter of 1998. The success of ongoing efforts to control manufacturing
costs, combined with the significant increase in volume, are the major factors
contributing to the quarter to quarter improvement in results within the
fastener segment. Within the assembly equipment segment, operating results trail
the year earlier period primarily due to reduced unit sales and a somewhat less
favorable product mix compared to the first quarter of 1998.

     On an overall basis, we are pleased with the excellent results achieved
during the first quarter. While demand within the fastener segment exceeded our
expectations, the concerted and dedicated efforts of employees in all areas
enabled us to successfully meet the needs of our customers, and, to do so
profitably. Market conditions within the assembly segment are not as strong as
we would like, and competition continues to be a factor that adversely affects
both volume and pricing. While this segment of our business continues to be
profitable, margins are not as robust as they have been in the past. We are
increasing our efforts to solicit new business within this segment, and we
continue to work toward reducing our manufacturing costs. Our products and
service are among the best in the market, and we expect to maintain, or improve,
our market position in the months ahead.
 
     The 1999 annual meeting of shareholders will be held at the Company's
headquarters in Naperville, Illinois at 10:00 AM on Tuesday, May 11, 1999. All
shareholders are cordially invited to attend. Formal notice of the meeting and
proxy materials, including the Company's 1998 Annual Report to Shareholders were
distributed early in April. If you have not already completed and returned your
proxy, we ask that you do so at your earliest convenience, even if you plan to
attend the meeting. Thank you.

                              Respectfully yours,
 
 
          John A. Morrissey                            John C. Osterman
             Chairman                                      President
 
April 23, 1999

     The foregoing discussion is only intended to provide highlights of
operations for the periods covered. Additional information is contained in our
Form 10-Q, which 



                                       14



<PAGE>   2


will be filed with the SEC and is available to shareholders upon request from
the Company, or via the internet through the SEC's EDGAR database. This
discussion contains certain "forward-looking statements" which are inherently
subject to risks and uncertainties that may cause actual events to differ
materially from those discussed herein. Factors which may cause such differences
in events include, among other things, fluctuations in general economic
conditions, consumer demand, the gain or loss of a key customer, and the price
and availability of the Company's primary raw materials. Therefore, readers are
cautioned not to place undue reliance upon such forward-looking statements.



                          CHICAGO RIVET & MACHINE CO.
                 Summary of Consolidated Results of Operations


                                                For the Three Months Ended:
                                                 March 31,       March 31,
                                                   1999            1998
                                                   ----            ----

Net sales and lease revenue.................     $12,517,480     $11,672,949
Income before taxes.........................       1,740,460       1,424,820
Income after taxes..........................       1,152,460         914,820
Net income per share........................            1.00             .78
Average shares outstanding..................       1,153,496       1,169,100

(All figures subject to year end audit)



                                       15