Israel Katz was born in Rottenburg, Germany on June 10, 1851. He arrived in America in 1866 and stayed with his Uncle E.L. Goldstein of San Francisco, he remained there for two years working as a clerk for his uncle, learning English and attending school. In 1868 he came to Port Townsend. His brother Solomon Katz had a business with Sigmund Waterman called Waterman & Katz. Israel started out as a clerk and in 1871 purchased an interest in the business. The business was a general merchandising store. The firm opened a branch store on the South end of San Juan Island with Israel as manager. In 1884 he purchased 40 acres on San Juan Island from Peter and Elizabeth Seery for $150. By 1917 it was appraised at $1950. His brother William immigrated in 1870 and became a clerk in the Port Townsend store. By 1881 William, Israel and Sigmund Waterman were the owners. Both stores continued, but then in 1888 William while trying to board a boat in Port Townsend Bay, was drowned; four months later Sigmund Waterman died in San Francisco after a long illness.

Israel purchased the business interests of Waterman and Williams widows and became sole owner. In 1885 the brick building at the corner of Water and Quincy was built, adjoining the old wood building where the old store was. The lot is 110 feet on Water Street and runs to deep water. The building itself was 40 ft. by 100 ft. It had three stories and a basement. Three warehouses adjoined this main building and a wharf provided a space for deep sea vessels to load supplies.

In 1887 Israel returned to Germany to find a wife. Adele Maas was 17 years old the daughter of a prominent family. Israel was 36 and must have seemed an old man to her. She was in love with a young soldier at the time but her parents wouldn't allow them to marry as he was considered below her station. They approved her marriage to Israel and they were wed in 1887. The young soldier later committed suicide. Israel brought his young bride back to Port Townsend. In 1889 they moved into their new home on the corner of Maple and Learned Ave. [now Tyler & Blaine]. In 1889, because the store was losing money Israel sold the San Juan branch of the business. By 1893 Israel and Adele had three children, William, Edwin and Milton. In 1892 a daughter Sylvia had been born but died six months later. Their son Milton died in 1899 of an attack of croup while he and his mother were on their way to Germany.

To be continued