I think it is reasonably clear this was a reference to the Iroquois Theatre
fire where 602 people died.

Not at all.  The actual quote is

 The most stringent protection of free speech would not protect a man
 falsely shouting fire in a theatre and causing a panic.

The Iroquois fire was unfortunately all too real.

As soon as the US entered WW I the first amendment basically went out the window with the Espionage Act. Schenck was part of that.

R's,
John

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