I got it working.  It seems mod_rails is logging to log/production.logs, 
same as before but it can require a minor tweek.

The fix was to follow:

#

By default, Passenger runs Rails applications in production mode, so 
please be sure to check production.log instead of development.log. See 
RailsEnv for configuration.
#

By default, Passenger runs Rails applications as the owner of 
environment.rb. So the log file can only be written to if that user has 
write permission to the log file. Please chmod or chown your log file 
accordingly.
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