Adding Package Name To Source-code When Compiling / Running From Command Line?

I am operating java from the command line (using Terminal on Mac OSX 10.9.5).The current directory within Terminal is called "orange" and the following sourcecode file is in the orange directory :

Test1.java
package orange;
public class Test1 {
public static void main(String[] args) {
System.out.println("Test1 works");
}
}

This complies to Test1.class (visible in the orange directory) but when I try to run it in Terminal (simply using "java Test1" from within the orange directory). I get the following error message (which I don't get if I simply comment out the line //package orange;)

Exception in thread "main" java.lang.NoClassDefFoundError: Test1 (wrong name: orange/Test1)
at java.lang.ClassLoader.defineClass1(Native Method)
at java.lang.ClassLoader.defineClass(ClassLoader.java:800)
at java.security.SecureClassLoader.defineClass(SecureClassLoader.java:142)
at java.net.URLClassLoader.defineClass(URLClassLoader.java:449)

[code]...