As you know the family was in Middletown, CT according to the 1910 and 1920 census. What is odd is in the 1910 census the oldest 3 children were born in New York, the next 3 were born in Germany and the youngest (11 months old) was born in CT. So did they come to the US, go back to Germany and then come back again. I see your confusion as the 1920 census has them being from Poland/Russia. Schmidt is a very German name so I would think that would be their origin as the 1910 census indicates. I would try and find immigration records or birth, death, marriage records of the parents and children may also help.