diff --git a/activesupport/lib/active_support/tagged_logging.rb b/activesupport/lib/active_support/tagged_logging.rb
index 09bfc95231..18bc919734 100644
--- a/activesupport/lib/active_support/tagged_logging.rb
+++ b/activesupport/lib/active_support/tagged_logging.rb
@@ -54,14 +54,6 @@ module ActiveSupport
         end
     end
 
-    def self.create(f, formatter, level)
-      logger = ActiveSupport::Logger.new f
-      logger.formatter = formatter
-      logger = new(logger)
-      logger.level = ActiveSupport::Logger.const_get(level.to_s.upcase)
-      logger
-    end
-
     def self.new(logger)
       # Ensure we set a default formatter so we aren't extending nil!
       logger.formatter ||= ActiveSupport::Logger::SimpleFormatter.new
diff --git a/activesupport/test/tagged_logging_test.rb b/activesupport/test/tagged_logging_test.rb
index 0f5b2cba8f..27f629474e 100644
--- a/activesupport/test/tagged_logging_test.rb
+++ b/activesupport/test/tagged_logging_test.rb
@@ -22,17 +22,6 @@ class TaggedLoggingTest < ActiveSupport::TestCase
     assert logger.formatter.respond_to?(:tagged)
   end
 
-  test 'creates a tagged logger with the appropriate level and formatter' do
-    stringio = StringIO.new
-    logger = ActiveSupport::TaggedLogging.create(stringio, ActiveSupport::Logger::SimpleFormatter.new, :debug)
-    logger.debug("foo")
-
-    assert_not_nil logger.formatter
-    assert logger.formatter.respond_to?(:tagged)
-    assert_equal 0, logger.level
-    assert stringio.string.include?("foo")
-  end
-
   test "tagged once" do
     @logger.tagged("BCX") { @logger.info "Funky time" }
     assert_equal "[BCX] Funky time\n", @output.string
diff --git a/railties/CHANGELOG.md b/railties/CHANGELOG.md
index 9e9d7e9009..60a823de15 100644
--- a/railties/CHANGELOG.md
+++ b/railties/CHANGELOG.md
@@ -1,9 +1,5 @@
 ## Rails 4.0.0 (unreleased) ##
 
-*   New rails apps log to STDOUT by default
-
-    *Terence Lee*
-
 *   Add support for generate scaffold password:digest
 
     * adds password_digest attribute to the migration
diff --git a/railties/lib/rails/application/bootstrap.rb b/railties/lib/rails/application/bootstrap.rb
index 2a845bca17..62d57c0cc6 100644
--- a/railties/lib/rails/application/bootstrap.rb
+++ b/railties/lib/rails/application/bootstrap.rb
@@ -39,7 +39,11 @@ INFO
           f.binmode
           f.sync = config.autoflush_log # if true make sure every write flushes
 
-          logger = ActiveSupport::TaggedLogging.create(f, config.log_formatter, config.log_level)
+          logger = ActiveSupport::Logger.new f
+          logger.formatter = config.log_formatter
+          logger = ActiveSupport::TaggedLogging.new(logger)
+          logger.level = ActiveSupport::Logger.const_get(config.log_level.to_s.upcase)
+          logger
         rescue StandardError
           logger = ActiveSupport::TaggedLogging.new(ActiveSupport::Logger.new(STDERR))
           logger.level = ActiveSupport::Logger::WARN
diff --git a/railties/lib/rails/generators/rails/app/templates/config/application.rb b/railties/lib/rails/generators/rails/app/templates/config/application.rb
index 2df2fa9a6a..daf399a538 100644
--- a/railties/lib/rails/generators/rails/app/templates/config/application.rb
+++ b/railties/lib/rails/generators/rails/app/templates/config/application.rb
@@ -32,7 +32,5 @@ module <%= app_const_base %>
     # Disable the asset pipeline.
     config.assets.enabled = false
 <% end -%>
-
-    config.logger = ActiveSupport::TaggedLogging.create(STDOUT, config.log_formatter, config.log_level)
   end
 end
diff --git a/railties/test/application/configuration_test.rb b/railties/test/application/configuration_test.rb
index 40000b0ce6..7b45623f6c 100644
--- a/railties/test/application/configuration_test.rb
+++ b/railties/test/application/configuration_test.rb
@@ -670,26 +670,5 @@ module ApplicationTests
         end
       end
     end
-
-    test "set logger to STDOUT by default" do
-      stdout = capture(:stdout) do
-        app = build_app
-
-        controller :omg, <<-RUBY
-          class OmgController < ApplicationController
-            def index
-              Rails.logger.info "HI MOM"
-              render text: "omg"
-            end
-          end
-        RUBY
-
-        require "#{app_path}/config/environment"
-
-        get "/omg/index"
-      end
-
-      assert stdout.include?("HI MOM"), "STDOUT does not include 'HI MOM', #{stdout}"
-    end
   end
 end