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The fire was a tragedy in 1911. 146 people died, mostly of Jewish and Italian heritage. 146 people is not the vast majority of immigrants.
The level of observance varied in the immigrant community, just as it varies in America today.
Most pre 1924 Jewish immigrants to America were ‘Euro-Traditional observant, not what we call Frum today. Today’s Frum American Jew has a much better Torah education than those raised at the turn of the 20th Century in the US. Most US Torah institutions were in their infancy at that time. Many had only a rudimentary Jewish education in the old country (or in America) they observed rituals in conformity with the community standards. Because they were no longer forced to live in a designated ghetto, shetl, Pale of Settlement, they often made choices to change their level of adherence to halacha.