Jay Horowitz and Michael Berke

00:08 Hi, my name is Michael Berke. I am 55 years old. Today is February 22nd 2020 and we are in New York City New York. I am interviewing the wonderful and fabulous Jay Horowitz. I am currently Jays director of sales for American classic toy.

00:34 Hi, my name is Jay Horowitz. I'm 73 years old.

00:40 Today's date is February 22nd 2020.

00:45 With thrilled to be in New York City

00:49 And we are working here today without if I pay my partner is Mike Burke like his vice president of sales and marketing you might company American classic toy Incorporated.

01:05 Jay we've been friends and have been working together at American classic toy for many years. How did you first get into the toy industry?

01:14 Oh.

01:16 It wasn't my choice. I was born into the industry. My grandpa Sam was a refugee from the Russian for drums in about 1894. He immigrated to USA in 14 years old. He worked in the streets. He worked hard. He saved every nickel and by 1901 he was able to open up his own toy company and the name was Samuel and hurwitz Incorporated.

01:49 Moving forward a generation World War. My father was a soldier and when the war ended

01:59 Lee returning soldiers my father married his childhood sweetheart. Mom and his father my grandfather invited him to join the family firm in 1945 Samuel and Horowitz Incorporated now became Samuel and Horowitz & Son Incorporated, I grew up in the family business. My father took me to work since I was 5 years old. I thought I was working. Anyway, I was there and even brought me to the Toy Fair. It wasn't Toy Fair in those days. We used to call it the Toy Show and children weren't allowed in but they had brought me in and they had plenty of friends. So I was allowed in and then would always say hey you got any free samples for my kid. Well, so I grew up in the toy industry.

02:52 Now, how did I get into it?

02:55 In 1966 while I was a student at New York University. I had the opportunity to visit.

03:05 Colombia South America

03:09 Not Columbia, South Carolina to Columbia South America and during this

03:16 Pleasure trip

03:18 Having grown up in the toy industry the first thing I said. Hey take me to a toy store.

03:26 Well, they took me to a toy store. It was a beautiful toy store in the best neighborhood in Bogota.

03:36 And just as we were arriving at the door, I put my hand to open the door and the door open by itself and it wasn't automatic. It was a lovely lady inside opening the door for us. She said welcome come on in and then she said please have a seat. She let us to a sitting area.

03:57 We sat down and then she said would you like coffee would you like tea would you like milking it? Would you like sugar....... And we came to buy toys look at this and then she said well now let's get down to business. Are you here to buy a toy for boy what he had to buy a toy fruit girl. Is it a birthday? Is it Christmas? It happened to be the week before Christmas and with all this service. I finally said while okay, let's see a toy for girl. She brought she went over and brought a little dog about foreign just told it was blow molded in a plastic polyethylene bag. The eyes will paint it on the face was painted and looked at it. It's nothing I had seen in my lifetime. It was like pre-World War II u.s. Technology. And naturally I said, okay, what's the price? She said one peso

04:55 At that time the exchange rate was about 1610. So 1 peso was around the nickel u.s. Terms. Well, what do you have for boy? She goes away comes back with the truck about 6 in a dump truck, but plain plastic in a pill at plastic bag and they did okay with the price. She said one peso so I looked at it and I thank you very much and they were really wasn't much else. We left the toy store and I said, hey take me to another store.

05:32 And I was told why did they have no assortment here? Hey, that's the best store in the best neighborhood. That's what there is a that's it. That's it. Well

05:48 I thought about it.

05:50 I was at an international marketing major at New York University.

05:55 They said I was growing up in the toy industry in the United States and New York City with all the razzle-dazzle and here I found a market.

06:07 Bad had no real Supply and it looked like an opportunity.

06:15 Well, we return back to the United States have finished.

06:19 I graduated from New York University and

06:25 My father naturally said son, it's time you join the family firm and he offered me the position of vice president and I thought about it, but I looked at the business our family business was wholesale and Retail we had a we had 5 retail discount toy stores in the New York City area New York area and we had a large wholesale distribution company. This was very important in the 1940s 50s 60s 30s and those days when a person to consume a 110 to buy a toy the customer's you go to your neighborhood mom and pop toy shop that that's just what you went to the shop and there was a mom and a pop and they will show you the toys you buy your toy. You can buy toys in the card shop you can buy toys in a drugstore and it was local drug stores. There was a five-and-dime store, but

07:24 The stores were very small quantities of each of large assortment and they had the assortment there were a few small manufacturers that manufactures they were less than 2000 manufactures almost the great majority the New York greater area and they were thousands and thousands and thousands and thousands of retail toy stores. So the wholesale is played a part in the channel distribution because

07:59 The manufacturers will not able to sell a retail store to Pieces three pieces and pieces of an item a wholesaler can purchase 5000-10000. Mm and they will buy a thing by the carload by the truckload there by the trainload and we had a large a whole block Warehouse in Brooklyn with five stories on the 5th floor. The Retailer's could come in and see our beautiful showroom and they would come in we had salesman and people would come in and send this to Mom and Pop's will come in and say whatever day we took him to Marx toys. We took him to the topic toys with the computer rental with we had every line that was made in the United States and the toy retailer to buy I'll take three of this something through with that. So the wholesaler and then we we gave them credit and we delivered by truck. We performed an important service.

08:59 No, I'm graduating college in 1968. Things are changing. Wait a minute. There's a chain called Toys R Us they weren't here before.

09:11 What about Walmart?

09:13 Hold on Wal-Mart didn't need to go to a wholesaler to buy toys. They put more toys in all the wholesalers put together and Toys R Us was a big by Toys R Us bought from us in the beginning. But once they got once they grew everybody bought direct show the channel of distribution was changing and I said to my dad thanks for the offer. I have my own ideas and I am my own toy ideas and I thought about the opportunity that I had seen in Bogota Colombia.

09:52 3 years earlier

10:01 You're asking. How did my father react he was disappointed that I didn't join the firm, but he respected my decision and my father was he was quite Progressive and he thought if I saw this opportunity, I should explore it. He was very supportive. He even offered to help me with it and

10:25 Here I was growing up and wholesale retail.

10:30 So I was quite familiar with the distribution and the and the United States toys, but now I want to be a manufacturer in the developing-nation. So the next question Dad, how do you make a toy?

10:46 He didn't know I didn't know.

10:49 So what I did was as the son of Jack Horowitz of Samuel and Horowitz and Son Incorporated very well-known and respected and loved in the American toy industry. I started calling the toy manufacturers in the New York area.

11:07 One particular Ico plastic toy and Novelty Corporation. What a great company that was and then the owner's name was Michael as Denmark and I called him up one morning early. I said hey Mickey, it's Jay. Yeah, hey kids. He always called me kid a kid. What can I do for acid make Christmas is over. This was January Christmas seasons of The Rush is over. I've never been to your factory. Would you mind if I come visit Mickey said hey kids. I don't have time to take you by the hand. But you're welcome to come take the Van Wyck Expressway South take you get onto the Belt Parkway. Take it to Coney Island Avenue and off make a right. Right, right. And there's a factory 2901 Coney Island Avenue come to the reception as for me and you can have access to the factory. I did just that when they arrive Mister Denmark Miss to her, which is he? Okay send them.

12:07 Hey kid, what do you want I said, I'd love to see them. Okay. There's a dog go in the you know, the hedges department they all know they were expecting you and they will help you go right through. I went into the factory. It was just a University graduate. I walked in a full suit and a tie which didn't it was not appropriate for a factory. I had my notebook. I had my pain and I went from Department to Department that went to the molding Department the assembly Department the pre-assembly the decoration Department the storage departments the packaging Department.

12:45 3 hours later the plant manager comes over. Hey mister Horowitz. Yes, Mister Denmark would like to see in his office. Okay?

12:55 Hit head.

12:56 Mister Denmark says Hey kid. You always called me kid. Ohmyla Hey kid. What happened to get lost it? Okay. You have any questions? Yeah. I have a couple I pulled out my notebook. I asked question. Number one. He gave me the answer question. Number two will lock the only gave me the answer question number three. He took off his eyeglasses. He said Hey kid.

13:27 Remember he was from Brooklyn?

13:30 Where we have proper English spoken Hey kid, you didn't come to visit. You can take to learn the business. Tell me the truth. What are you going to do? Your old man is going to finance you and you going to go in and compete with me. Hey tell me the truth said no Mickey I had occasion to Leslie few years ago to be in Columbia South America. They have a market.

13:56 33 billion population. No toys are being manufactured or very rudimentary toys. It looks like an opportunity to manufacture good toys.

14:10 Mickey was a brilliant man uneducated but with raw intelligence he put his glasses back on that. Hey kids. Come on. I'll buy you lunch. Believe me for Mickey to spend the buck. Men something took me to his Delicatessen in Brooklyn as we sit down we order the food and water as we finish eating. He said kid your bright boy, you'll do well on your own. It'll take you some time. You'll make it take me along with you as your partner. I'll teach you the business. I'll provide you with the molds. I'll provide the intellectual property rights. I'll give you the technology and I'll help you every step along the way I've been doing this over 20 years and I can help I've always wanted and then and then

15:10 Mint overseas

15:12 Well

15:14 We shook hands and I had a partner.

15:19 That was so valuable. I didn't even appreciate what just happened. He handed me the business with that. I had anime of successful American toy company to install in Columbia.

15:37 And when we shook hands you said okay kid, you're doing the work you get to search I take 1/3 because I'm going to be Consulting and will show you the molds at a very very favorable price. You don't have to pay for anything until after you get your Christmas receipts. So we'll make it easier and whatever money you put up. I'll put up my share. So I'm in the Vesta As You Are.

16:07 Starting tomorrow you come to work at the factory. You're on the 7 to 3 shift.

16:14 The department heads will train you Department by departments and after three coming to my office and I'll dictate clashes and that's what we did the next day. I went to work without my suit and tie and it's 3 in Mickey's office. He gave me textbooks. I was still at University graduate. I read the text books. I learned the business and he and he gave me classes and after a while.

16:48 He said this why was about six weeks. He said okay kids you're ready. Take notes find a building find injection molding Machinery where you'll need a Huntington, press approximately you'll need to 300 Empress. Do you get at 3:50? You'll need a maybe a 500-ton press you got to have fighter a source for polyethylene load then she find a source for high-density find a high impact styrene find the source for tile on find the source for general purpose. But by the popular pop Gabriel destruction kind of thing when you're ready, you do the legwork you get it already call me. I'll come down will sign and that's what we did.

17:35 I went to Columbia and I did everything Mickey set.

17:39 But

17:41 Bogota was not New York City. Columbia was not United States of America.

17:48 But somehow we managed I got it ready Mickey came we signed we got started. We're in business. Well here we were installing an American toy company American Machinery American tooling American intellectual property, right American packaging American Marketing in a in a company in a country. That was this was 1969 was March of 1969 when the company was about equivalent to the USA 1940s. So we had all every advantage in the world.

18:30 Started the business and of course as a young proud boy, the first thing I did was

18:36 What's the biggest toy buyer in the country? Well, I found out it was a witch. Look at the Haida. The toy buyer for Albertson is late, which was the absolute largest chain store in Columbia Salvage 1922. I asked for an appointment got the appointment travel to Medellin Colombia sat down and got the appointment shut down with this toy buyer.

19:05 And Mickey guided me with everything so I sat down with the toy buyer and it and I are coming to the appointment with samples of the samples were provided by Mickey and we had an artist put the packaging in Spanish and we had the modern packaging no more than that. We had a blister pack. We had shrink wrap. We had 4colorprint we had and it was beautiful and walk in the door and the buyer.

19:38 Hey gringo.

19:40 What have you got?

19:43 He wasn't really welcoming. So I said how do you do miss the cart thing? I'm Jay Horowitz and that the name of our company's Toyko who get this toy Co like I was a name that we put on as toys company let it came out very nice in Spanish will get this toy Co which was meant to accompany everybody and it also smacked a little bit like Tokyo Japan American presentation at Japanese presentation, and I said to mr. Cortana, I got this beautiful place at the airport. I took out the airport show them that and is it what's the price is retails for 100 pesos wheel Wholesale in 450 payment. What's next? I showed him some baby toys. How much is 20 pesos? And what's next is a beautiful telephone like to get the telephone. It's in the shrink wrap. It's on a platform box you dial it and it rings you could call your mother.

20:43 It's just that the. Tell me about the telephone. What's the price of pistols that package is beautiful. It's good for Gringo land you're in Colombia.

21:02 The Columbian is not going to pay for an unnecessary package. It's too beautiful cost too much money. Throw it out. Put the telephone into a plastic bag.

21:19 Luck with the cut the Haina the presentations an integral part of the proper. Hey Gringo, what's the price temperatures Gringo cut that price and hip throw out the package and ask again.

21:36 Urban Mystic Bubba puppies Mystic mystical Gringo go home

21:43 I packed up my samples here. It was after all that preparation in investment. I put every penny I had to get this toy company started my first meeting with the biggest toy by the country and he throws me out. I was like crying well.

22:06 I go out what I'd of course. I called Mickey Mickey top his business and I explained to him Mickey was terrific Hey kid you always don't worry. That's the way of fire is on. Why is it that way? He'll come around go to the stores. I listen to Mickey. I went to the owner send it to support the store that I went to see when I visit 1966 met with the owner. He was a gentleman he was well-dressed and he said beautiful toys. He was sophisticated. He used to go to the United States. He knew the toy Market beautiful toys. He bought everything we had but the quantities but I'll take a half a dozen up that could doesn't telephone this beautiful. I'll take two thousand.

22:53 You can't make a living on those quantities, but I had to get started. So I went store by store by store and by Christmas we made on numbers. We was successful.

23:06 Well, you're buy you things grew and

23:12 A year later. I had the big break.

23:17 We got into TV and once we got on television everything changed and we had hit after hit on TV, and now we weren't selling we weren't offering people calling people with buying and of course, my favorite part was once we had a hit. Let me that I owe this to my Laura in the year 1973. I'm in my office and the my telephone operator. Mr. Horowitz. You got a long distance phone call from Moline. Okay, and it was calling me.

23:56 Down Jay this is your friend. I will still got the hater from Medellin Colombia to buy it from under send as late as if I didn't know who it was. Well, they were accustomed once we had success they bought I didn't have the personal relationship with hey.

24:14 John Jay

24:16 How many meter elotes are you willing to sell us?

24:22 I'll send the truck at the time and day you tell me with the check. The item was so hot. It was just selling off the trucks that we were selling. It. It it it became a multi-million unit seller. It was so hot. Everybody wanted it. So now I had the satisfaction of green Google home calling being safe. NJ do me a favor.

24:53 Jay that is a fascinating story. I never knew that.

25:02 So, what did you do when you return to the USA?

25:06 Well, I stay in Columbia was wonderful at me when I went there was Paradise but things changed. We went in the 60s. It was beautiful things change later on and with Fame and Fortune.

25:23 Kim Danger

25:25 We were the victims.

25:29 A financial fraud

25:32 Extortion and even kidnapping well, but it wouldn't that happen. We just hit okay say it's time to leave. We always cooperate with the authorities and the Colombian authorities will wonderful. They really really covered everything but it was no longer safe for us to live there. So we we discussed it and we decided to return to the safety of good old USA. Now, what am I living? My business plan was to take American toys, but toys from the prior years to the new in Columbia. I said, I can't make old toys for United States. What am I going to do? I thought about it a lot.

26:21 Then I came up with the idea. Hey if my company toy Co was so successful successful by bringing United States technology in marketing.

26:34 Shouldn't that apply to any company?

26:38 Outside of USA

26:41 I found it American Plastic equipment Inc incorporated in Florida 1978 whose purpose was to provide tooling American tooling and intellectual property rights know how technology to toy companies around the globe.

27:05 We started in 78 and I was buying mold by mold product by product from the American toy company while I had the relationship with my father my father still operating Samuel and Horowitz and son is a wholesale adult with every toy manufacturer and the the relationships in the advantage was very helpful. Hey talk to my son and I would get the appointments and make the deals. Well, it was successful and we were we had licensees.

27:40 In many countries and of course starting with the countries that I would Familia while I was in Columbia became the founder and president of the Columbia toy manufacturers Association. We exported to Venezuela Ecuador Peru, so we had contacts there and that's where I started with the people. I know well with the success we just weren't in the business was going very well and then a big break The Big Break was Marx toys became available for sale toys. The world's largest toy company. Well, it's a whole story in itself, but missed the mark sold at the Quaker Oats. It was then resold to Richard Beacham and then in 1979 and then turn it into bankruptcy and southern district of New York in 1980. It was awarded to The Chemical Bank of New York they fight.

28:40 The legal process in 1982 on the southern district of New York Court, it was offered for liquidation and The Chemical Bank of New York called set American Plastic equipment and this is an old story into itself. But we were successful in purchasing Marx toys All of Us toys and here I was buying mold by mold product by-product rice by rice. That's very expensive. It was still very profitable is very expensive. And then this is now became my new mother by an entire company and includes the patents copyrights trademarks molds and everything else. We liquidated all of the assets retain the moles in Trenton and intellectual property rights took us to our plant in the Miami, Florida.

29:38 And successfully got success from buying marks the toy industry begin calling and selling his other companies such as Ideal Toy Corporation from CBS toys and about 32 companies in all we was successful.

29:58 Jay thank you for sharing the fascinating background of American Plastic. But I work with you at American classic toy. How did that come about well by owning the tooling and fill out your property rights. We said why don't we establish a company?

30:16 To sell these well-recognized American classic products besides licensing to overseas companies. Do we stop a American classic toy incorporate in Florida? The purpose was to issue the well-recognized classic American toy from the original molds to the original specifications under the original intellectual property, right updated to meet current safety regulations. And of course, it was successful because when we got them on the shelves of Toys R Us or Walmart the consumer recognize it the children that way now 50 and 60 years old is it? Hey remember that I played with that. Let me get one for my child. My son my daughter my grandchild.

31:06 Jay tell me about an accomplishment that you are most proud of.

31:11 Well around 9 in 1983. I was invited by the Chinese government under President thing to participate and Industrial fit tried. It was just opening up they were looking to industrialize and they ask they invited me to come as guests of the government to to show them how toys are made and we did we met in Beijing and they like the idea. They assigned it to Light Industry in Shanghai Light Industry in Shanghai. We met with them and they discuss purchasing a toy factory and they form the committee the committee came to visit American Plastic equipment in Miami and during meetings.

32:01 We agreed they purchased the Machinery then they they saw our showroom and they chose the toys and and we entered into a contract to build the first modern Toy Factory in China. It was cited for qingdao. And we designed the fact they built the building that they purchased Machinery. We included the technology of the intellectual property rights. It was Machinery from Ideal Toy Corporation mulch for my for Marx toys training guarantee. I wrote a handbook and it was a great deal the Chinese with thrilled with it. And I was very happy that they were happy. I was expecting them. Well, they like this Friday though, buy another one for Shanghai and another one for Beijing and another one but why Joe the truth is

32:59 They loved it so much. They learn from it. They never bought another Factory. They learned how to do it themselves. Not only that they learned very quickly and they learned very well.

33:12 Over the many years dealing in toys. You have met many famous people which one stands out in your memory easy question Evil Kenevil. When I what Ideal Toy the best one of the outstanding toys of all time. The best action toy is the Evel Knievel wind-up toys. We had the mold and rights to make you with Knievel toys the entire line that was 78 molds. It was quite complete quite complex made a great line of toys. So under American classic toy, we were reissuing Evel Knievel toys, but we had the moles we had the right, but we did not own the name Evel Knievel nor the likeness to his face. So how do you get that? I chased Evel Knievel around he wasn't easy to get through wasn't easy to talk to.

34:07 But

34:09 A little patience and persistence 1 mm. / we first became friends we went for dinner. And as we became friends, I propose that we reach the Evel Knievel toys and we did he gave us the license and then we became best friends while we were working together and then an interesting thing was around two step February 2006 one day evil. Call me Jay. I need you to talk some sense into my wife a boy get between a husband and wife.

34:48 He ate said I got to go to.

34:51 Daytona Florida, I represent Harley-Davidson. I got to do shows there at fight this week and Crystal doesn't want to go with me. Can you talk her into it all my gosh. I call Crystal. She was at the same house. I called her on her cell phone. She was in the Next Room. I explained to her and I didn't want to talk to a husband why it would have been do she said Jay? I'm so glad you called maybe you can talk some sense into evil is or you and she said I'm happy to go with him. He is just not driving the rig the ring with two big trailers with the Evel Knievel Museum all the famous motorcycle invented the public loved it and they love seeing evil, but he insisted on driving. She said if he drives and I sit next to me, he's a menace on the road. He's a danger to himself. He's a danger for everybody on the road. I will not tolerate it. And if I sit next to him, it's almost as if I'm approving it. So we're knocking while I get off.

35:51 For what am I going to do with him like a daughter like it though. I called the back. I've got a suggestion. She loved the suggestion. I could evil has a suggestion.

36:01 Crystal says you have 13 employees to professional drivers. Let Russell Drive the rig all the way in let him stop to block before the Expo you Crystal Drive the family car ugo's passenger to box before you get in the truck. You drive the last two blocks open the window wave to the public gloriously and he's by public must see me and said they'll see your evil and he's gloriously waving your drives two blocks get out Russell can park the trailer put away you go into the Stars trailer and then you get out and do you show well, she liked the idea. He liked the idea.

36:48 So the issue

36:52 Jay thank you for storing sharing sharing that Evel Knievel story. I'm sure I've told you that the Evel Knievel stunt cycle was my absolute all-time favorite toy. And when I unpacked the sample, the first time that I came working for you I got chills and I was thrilled but Switching Gears of your own inventions what has been your most successful interesting that you ask that because just following my trip with evil in

37:24 At March of 2006. I took a flight from Fort Lauderdale back to my Factory in Ohio. And when I got on the plane passenger sitting next to me, she looked up at me. She's just she's busy scribbling. She's just don't you know what I'm doing? No, don't you know what you don't know well in the rest of the flight took me how to play Sudoku by the end of the flight. I said, wow, what a fascinating concept. How can I apply to a game? I got back to the factory. We pulled out the original Rubik's Cube mold from Ideal Toy make samples. I worked on it for 40 days couldn't figure out how to do it and all of a sudden went to Miami Beach to see Mom and all of his son in an instant. It hit me. I came up with a pattern to put the two dimensional Sudoku puzzle on the three-dimensional puzzle cube this pattern that I go to the pad in the kids room.

38:24 Probably cool an algorithm. Well, it was an instant hit we sold millions of Sudoku cube in over 40 countries. I even got a call from President Bush and President Bush awarded me in Washington DC the Congressional Medal of Merit for this Dell computer.

38:47 Jay it. Sounds like you've been very lucky. What do you think luck is it it's it's a good concept because often we think happened.

38:56 Marx for everyone's door. It's only those people that take that opportunity and the timing and turn that lock into success. But the more you want to think that hey I didn't hey that airplane had 500 seats on it. What if I was assigned to a different seat that I never met the lady playing sudoku we wouldn't be having this conversation today. So there must be something cold look.

39:31 Thanks. CJ. Is a fascinating story. I think you should write a book.

39:40 I just happened to have a book that described everything in detail that you know, and it's available on amazon.com. It's written in Spanish and is coming out soon in English. And the name of the book is Gringo go home by Jay Horowitz the Publisher's editorial Thiago. It's printed published in Spain. It's available in USA on Amazon and will soon have one in English.