My production server runs Linux using System V style init scripts.
Tomcat is brought up by running service tomcat6 start as root user (service
Did you see the variables?
CATALINA_HOME: This represents the root of your Tomcat installation. When we say, "This information can be found in your CATALINA_HOME/README.txt file" we mean to look at the README.txt file at the root of your Tomcat install.
CATALINA_BASE Optionally, Tomcat may be configured for multiple instances by defining $CATALINA_BASE for each instance. If multiple instances are not configured, CATALINA_BASE is the same as CATALINA_HOME.
In the file apache-tomcat-7.0.42/bin/catalina.sh you will see:
# Only set CATALINA_HOME if not already set
[ -z "$CATALINA_HOME" ] && CATALINA_HOME=`cd "$PRGDIR/.." >/dev/null; pwd`
# Copy CATALINA_BASE from CATALINA_HOME if not already set
[ -z "$CATALINA_BASE" ] && CATALINA_BASE="$CATALINA_HOME"