The expression  "Brownie points" in the American language and the 
railroaders' term "brownies"  for demerits come from an august and enlightened railroad 
practice.  Superintendent G. R. Brown (hence, the  name) of the Fall Brook 
Railroad in New  York State, beginning  in 1886, developed an enlightened, 
instructive system of discipline, involving  positive and negative points.  (The  
Fall Brook RR later was absorbed into the New York Central.)  
Interestingly, Brown  wrote that accidents and "close shaves"(i.e, close 
calls) both impart safety  information.  He did not suspend men  for accidents and 
rules infractions, as was then the railroad disciplinary  policy.  According 
to the severity  of the event, he gave demerits.  Merits were awarded for good 
service.  Hence, the "Brown System" had positive  and negative Brownie 
points.  Brown  used bulletins as a means of instruction regarding what was learned 
from acts,  sometimes called blunders, earning negative points.  An annual 
bonus to conductors with a  perfect record was sometimes part of the Brown 
System. 
The best book on  Brown is by a Browne (K. J. Norman).  Browne's The Brown 
and Other Systems of Railway Discipline,  London, Railway Gazette, 1923,  is a  
classic.  At a meeting in 1897 of  the American Association of Railroad 
Superintendents, "Brown's Discipline" was  discussed with appreciation (Railroad 
Gazette 29, 1897:690-691).
—Fred Gamst
[from the R&LHS Newsgroup.]