The following verbiage is taken from the National Register of Historic Places Nomination Form to describe its significance:
Claus and Hannchen Schroder Schmidt were natives of Schlewsig-Holstein, Germany, who migrated to the United States in the early 1880's. They were both born in a part of Denmark that later was ceded to Germany in 1864 as a result of the Prussian war. They were educated in xhigh' German, but spoke a dialect known as xFlat Dutch' and considered themselves Danes. Claus was trained in Germany as a furniture maker, but when he arrived in the U.S. he was unable to find work, since furniture making in this country was no longer done by hand. In San Francisco, Schmidt set about learning the language and entered into a partnership in a grocery store near the Ferry Building. He met his future wife, Hannchen, at a German social club. Although they were born in neighboring towns, the Schmidts did not know each other in their native county. In 1887, they arrived in Southern Oregon on the recently completed Southern Pacific railway, homesteading in Josephine County.
When the Schmidts arrived in Josephine County, major changes were taking place that would ensure that Grants Pass would become a center of commerce. The railroad had arrived in 1883, the first bridge had been built across the Rogue River in 1886 and the Town of Grants Pass was incorporated in 1887.
The Schmidts split a 160 acre farmstead with Hannchen's sister Emma and her husband, George Gebers. The farmstead was located on the south side of the Rogue where the Redwood Grange now stands. The Schmidts cleared the land, built fences and homes, planted a fruit orchard and raised vegetables. They raised hay and had pasture for their cows and 2 mules, Pete and Mollie. To generate some cash income, Claus hauled lumber. All five children were born on the farmstead; four survived infancy. All learned to read and write in German and in English, and graduated from Grants Pass High School. Their diplomas are still hanging on the wall of the upstairs hallway of their house.
In 1898, Schmidt headed for the Klondike. Instead of digging for gold, he cooked for the other miners, returning to Josephine County with enough cash to open his first grocery store in a rented building on 6th Street in Grants Pass in 1899. He built the counters himself. After a few years of walking the 2 ^ miles between the store in town and his farmstead, Claus Schmidt purchased two lots in town just blocks from his store. By 1901, the family moved from the farmstead across the Rogue River into the newly built house in town that is now known as the ^Schmidt House'. Later a third lot was purchased and the existing barn was built.
During the early part of the twentieth century, Claus Schmidt was active in the affairs of Grants Pass. He bought and developed several downtown properties, moving his store several times, each time into bigger and better accommodations. Grants Pass suffered two major fires during the 1890's and there was a drive towards brick buildings. In 1903 he moved from his original rented wood building one door south into a new brick building. In 1904 he bought three lots fronting on Sixth Street, between J and L, for $1255 and erected several brick buildings for rentals. This property had been used as a bicycle park, having a famous bicycle track. Again, in 1906, the Rogue River Courier reported that Claus Schmidt had bought yet another lot downtown and had erected another brick building. In 1909, he completed his final building —two stores on Sixth Street between J and K streets. Each of these stores was 25' by 100' and made of concrete and brick with a steel front. He moved his grocery to this location where it stayed until 1955. His grocery store was said to be the finest in the county. The Schmidt store was known locally as 'The Place to Meet' in town. The store was a community center where people would go to catch up on local news or to socialize.
On Nov. 13, 1913 the Grants Pass Bank and Trust Company, which had originally organized in 1901, became the Grants Pass Banking Company. Claus Schmidt was named president of the reorganized bank. On June 1, 1921 this bank was consolidated with the Josephine County Bank becoming the Grants Pass and Josephine Bank. Claus Schmidt was a director of this later bank.
Claus Schmidt was an active member of the Odd Fellows, a philanthropic organization that offered help to families in need. Schmidt extended credit quite freely to many of his customers. He was instrumental in helping early businesses in Grants Pass get started.
Schmidt must have been quite successful in his grocery and other business ventures, because he was able to travel to Germany twice. Claus and Hannchen made the arduous trip in 1908 and again in 1914 when they were gone from July 9 to October 13. On this trip, they had trouble getting transportation out of Germany as World War I was breaking out, finally getting home on a Red Cross ship.
The first Josephine County Fair was presented in 1919. Claus helped the fledgling fair get started by offering space in his buildings on 6th Street for Fair exhibits.
The Schmidts had five children, four who survived infancy. Hannchen died in 1924, Claus in 1927. The two daughters, Anna and Flora, never married. They lived in the house from the 1920's until the late 1970's when they moved into a retirement apartment and deeded their house to the Josephine County Historical Society. Anna went to work in the family store as a bookkeeper when she was 17. She was active in the running of the grocery business with her brother Herman until 1955 when it went out of business. Flora worked for the United States Bank for 40 years. Flora died in 1981, Anna in 1987.
This Museum House also contains a gazebo and barn in the backyard. The barn is original to the house, the gazebo was erected in 2008 and is open for weddings and other special occasions.