Properties file doesn' go in classpath, you must provide it and call it from code as shown here.
EDIT:
With your directory structure you call it like this:
PropertyConfigurator.configure("log4j.properties");
EDIT2:
Also, you must provide appender for it:
log4j.rootLogger=DEBUG, Appender1
log4j.logger.[logger-name]=level, Appender1
log4j.appender.Appender1=org.apache.log4j.ConsoleAppender
log4j.appender.Appender1.layout=org.apache.log4j.PatternLayout
log4j.appender.Appender1.layout.ConversionPattern=%-4r [%t] %-5p %c %x - %m%n
If you want finer control over logging, remove the first line (root looger) and put the second one where instead of [logger-name] you put the topmost package so that all the classes inside that package can use logging.
You can define multiple appenders and assign them to different classes in that manner.