If its trying to read there, then you must be doing a direct File IO (using the File API perhaps?) which is not permitted in
J2EE or more specifically WebSphere, except in cases that files are on network drives.
There are multiple ways to read properties files (search javaranch, I've posted about this multiple times in this forum) but the best way I've found is getResourceAsStream() which loads files from the class path. Keep in mind though, that doing so means the application must be re-deployed if you want to change the properties file.