Upvote:14
A lot of confusion here, but a kernel of truth. The book Railroad Signaling (2003, pp. 47-49) gives a fairly detailed account of how the color coding of signals evolved over time. It mentions that the use of clear lights did fall out of favor in Britain due to the Abbots Ripton rail accident in early 1876. The signal failure wasn't the only issue, and it was swing arm stuck in the wrong position, not a missing lens.
In the United States well after 1914, multiple systems remained in use, including some with clear lights (see King 1921, esp. p. 11). The first use of the modern configuration in the United States dates to c. 1900 and it was supported by research on color-blindness. At some point the Interstate Commerce Commission banned the use of white light as a signal for "clear", but I'm unable to find out when that was and whether any specific accident may have lead to it.