Traffic lights were controlled by people in towers looking down at the streets. When there was a long line of people at a red light, the controllers would see, and switch it to green. I did wonder how it worked when the controllers left work, though.
A childhood belief about traffic lights

others believed things like this
- I used to belive there were people under the traffic lights, otherwise they wouldn't work...Anon
- when i was about 5-8 i used to believe that oompa loompas lived in traffic lights and controlled the lights!!— ~wierd ~
- I used to belive that if we could find the light switch that controlled the sun, we could control the world. Anon
- I used to believe that God controlled the traffic lights. He would decide when it was everybody's turn to go.— Amanda
- i used to beleive that elves controlled traffic lights.— Jessica
- When I was little, I was thought that little elves controlled the traffic lights..— Rosie