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Nothing wrong with your tranny...
When I first got my '62 Dynamic 88 a couple of years ago, I experienced the same phenomenon and thought something was wrong with my transmission, so I did some research. The “Slim Jim” Roto-Hydramatic Model 10 4-S (four stage) transmission is essentially a three forward gear, one reverse gear design with a small torque converter. The torque converter's stator, the "Accel-A-Rotor", creates a two-stage shift effect in first gear. The shift from first to second speed (or stage) happens early by design, within a few feet of travel to get the heavy car launched. The "Accel-A-Rotor" actually converts the first gear ratio from 3.56:1 to 2.97:1. When the car shifts to second gear, it’s actually in the third stage speed at 1.56:1. Third gear is fourth stage speed at 1:00:1, and reverse is 3.53:1.
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