The book "Night" By Eli Wiesal is a summation of his ordeal in the ghetto and concentration camp in Nazi occupied Germany and Poland. Madam Schachter was a fifty year old woman on the train with her ten year old son. She had already begun to mentally deteriorate. Her son and husband had already been taken from her which had mentally unnerved her.
The more her mind deteriorates the more she would scream about seeing fire and smoke. The woman foreshadows what is yet to come in the camps. She has probably been told tales by other Jews in the community and even heard Moshe the Beadle's stories. Everyone believes she may be possessed by an evil sprit. The passengers also believe she may be talking like this because she is very thirsty.