Not to mention the toy train universe is kind of one of those 'small towns', if ZW's were fire hazards I think we would have heard about it, either through direct experience or lore. About the only threat of fire I could see was with people who took a 50 year old ZW out of storage and didn't replace the power cord, especially the original cloth covered cords (I just recently was given an old transformer for the 1920's as a display piece to go along with the standard gauge engine I bought at York, the cord is original.....and 'interesting' *lol*).
The ZW might not meet current standards for UL and the like, but that doesn't mean they aren't safe. Even with different attitudes towards safety, these were expensive items and made for kids as a toy (yeah, yeah, I know, they had the original lawn darts, creepy crawlers , the clatter things in the 70's that would shatter and send out shrapnel...) so I am sure they were careful even before lawyers (and common sense) prevailed.