Did the logadm-cronjob run after you made your modification? This is not clear in your post. The statement you posted only updates the config file but does not perform any actions.
You can also try to run logadm manually with the verbose switch on:
I am not sure, if it is necessary to send a SIGHUP to syslog when using the copy-truncate-option ( -c ). You might give it a try. Add -a 'kill -HUP `cat /var/run/syslog.pid`' to the commandline.
-a 'kill -HUP `cat /var/run/syslog.pid`' is necessary, because syslogd needs to close and re-open its file handle. -c does not break anything - but slows things down.
Not necessarily, if the logfile is opened with O_APPEND. The OP uses -c to truncate the logfile. So the inode stays the same and if the file is opened with O_APPEND, then it should be written starting with byte 1.
But if syslog does not use O_APPEND, then the filepointer stays at an offset of some 500k and continues to write from here, resulting in a sparse file. In this case the SIGHUP is needed.