[1][2][3] Schwarz was born to a German Lutheran family in 1836 at Herford, Province of Westphalia, Kingdom of Prussia[4] and immigrated to the United States in 1856 with his three brothers, Henry, Richard, and Gustav.

Toys that Schwarz displayed in the window of the store outsold stationery.

[8] By 1862 he had switched to selling the toys from his own shop, and in 1870 he moved his business to Manhattan in New York City.

[10][11] Frederick August Otto Schwarz died at his home in Manhattan at 20 East 61st Street.

Frederick August Otto Schwarz Jr. is his great grandson.