In fact, he was initially confused and surprised, as his eyewitness account shows:
> "Oh, the humanity! ... It's bursting into flames!"
He continued to report on the unfolding event, describing the flames and the panic of the passengers.
It wasn't until after the disaster that investigations determined the likely cause of the fire, which was static electricity buildup during the landing process.
Therefore, it wasn't immediately clear to Morrison what caused the fire, and his famous report captured the shock and confusion of the moment.