SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                  ------------

                                  SCHEDULE 13G

                 INFORMATION PURSUANT TO RULES 13d-1 AND 13d-2
                   UNDER THE SECURITIES EXCHANGE ACT OF 1934(1)



                             HALSEY DRUG CO., INC.

                                (Name of Issuer)


                                  Common Stock

                         (Title of Class of Securities)


                                     406369

                                 (CUSIP Number)

                               ------------------


         Check the following box if a fee is being paid with this statement [X].
(A fee is not required only if the filing person:  (1) has a previous  statement
on file reporting beneficial ownership of more than five percent of the class of
securities  described  in Item 1;  and (2) has  filed  no  amendment  subsequent
thereto reporting  beneficial  ownership of five percent or less of such class).
(See Rule 13d-7).





                               Page 1 of 16 Pages
- --------
(1) The  remainder  of this  cover  page  shall be  filled  out for a  reporting
person's  initial  filing on this  form with  respect  to the  subject  class of
securities,  and for any subsequent amendment containing information which would
alter the disclosures provided in a prior cover page.

         The information  required in the remainder of this cover page shall not
be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 or otherwise  subject to the  liabilities of that section of the Act
but  shall be  subject  to all other  provisions  of the Act  (however,  see the
Notes).



<PAGE>

CUSIP No. 406369                        13G               Page  2  of  16  Pages


     1         NAME OF REPORTING PERSONS
               S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
                        The Chase Manhattan Corporation

     2         CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*         (a) [ ]
                                                                         (b) [X]

     3         SEC USE ONLY

     4         CITIZENSHIP OR PLACE OF ORGANIZATION
                                    Delaware

            NUMBER OF                    5         SOLE VOTING POWER
             SHARES                                                     257,261
          BENEFICIALLY
            OWNED BY
              EACH
            REPORTING
           PERSON WITH
                                         6         SHARED VOTING POWER

                                                                    0

                                         7         SOLE DISPOSITIVE POWER
                                                              257,261
 
                                         8         SHARED DISPOSITIVE POWER
                                                                    0

     9         AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
                                    257,261

     10        CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
               CERTAIN SHARES*                                               [ ]

     11        PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
                                      3.1%

     12        TYPE OF REPORTING PERSON*
                                       HC


                     *SEE INSTRUCTIONS BEFORE FILLING OUT!



<PAGE>


CUSIP No. 406369                        13G               Page  3  of  16  Pages


     1         NAME OF REPORTING PERSONS
               S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
                              The Bank of New York

     2         CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*         (a) [ ]
                                                                         (b) [X]

     3         SEC USE ONLY

     4         CITIZENSHIP OR PLACE OF ORGANIZATION
                                    New York

            NUMBER OF                    5         SOLE VOTING POWER
             SHARES                                           171,507
          BENEFICIALLY
            OWNED BY
              EACH
            REPORTING
           PERSON WITH

                                         6         SHARED VOTING POWER
                                                                    0

                                         7         SOLE DISPOSITIVE POWER
                                                              171,507

                                         8         SHARED DISPOSITIVE POWER
                                                                    0

     9         AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
                                    171,507

     10        CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
               CERTAIN SHARES*                                               [ ]

     11        PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
                                      2.1%

     12        TYPE OF REPORTING PERSON*
                                       BK

                     *SEE INSTRUCTIONS BEFORE FILLING OUT!



<PAGE>


CUSIP No. 406369                  13G                     Page  4  of  16  Pages



     1         NAME OF REPORTING PERSONS
               S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
                        Israel Discount Bank of New York

     2         CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*        (a)  [ ]
                                                                        (b)  [X]

     3         SEC USE ONLY

     4         CITIZENSHIP OR PLACE OF ORGANIZATION
                                    New York

            NUMBER OF                    5         SOLE VOTING POWER
             SHARES                                           171,507
          BENEFICIALLY
            OWNED BY
              EACH
            REPORTING
           PERSON WITH

                                         6         SHARED VOTING POWER
                                                                    0

                                         7         SOLE DISPOSITIVE POWER
                                                              171,507

                                         8         SHARED DISPOSITIVE POWER
                                                                    0

     9         AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
                                    171,507

     10        CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
               CERTAIN SHARES*                                               [ ]

     11        PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
                                      2.1%

     12        TYPE OF REPORTING PERSON*
                                       BK


                     *SEE INSTRUCTIONS BEFORE FILLING OUT!



<PAGE>


                                                          Page  5  of  16  Pages



Item 1(a).        Name of Issuer:

                  Halsey Drug Co., Inc.

Item 1(b).        Address of Issuer's Principal Executive Offices:

                  1827 Pacific Street; Brooklyn, NY  11233

Item 2(a).        Name of Person Filing:

                  The Chase Manhattan Corporation

                  Name of Person Filing:

                  The Chase Manhattan Bank, N.A.

                  Name of Person Filing:

                  The Bank of New York

                  Name of Person Filing:

                  Israel Discount Bank of New York

Item 2(b).        Address of Principal Business Office or, if None, Residence:

                  One Chase Manhattan Plaza; New York, NY  10081

                  Address of Principal Business Office or, if None, Residence:

                  One Chase Manhattan Plaza; New York, NY  10081

                  Address of Principal Business Office or, if None, Residence:

                  One Wall Street; New York, NY 10286

                  Address of Principal Business Office or, if None, Residence:

                  511 Fifth Avenue; New York, NY  10017

Item 2(c).        Citizenship:



<PAGE>


                                                          Page  6  of  16  Pages



                  Delaware (The Chase Manhattan Corporation)

                  Citizenship:

                  United States of America (The Chase Manhattan Bank, N.A.)

                  Citizenship:

                  New York (The Bank of New York)

                  Citizenship:

                  New York (Israel Discount Bank of New York)

Item 2(d).        Title of Class of Securities:

                  Common Stock (warrants to purchase)

Item 2(e).        CUSIP Number:

                  406369

Item     3. If this statement is filed pursuant to Rules 13d-1(b),  or 13d-2(b),
         check whether the person filing is a:

  (a) [ ] Broker or dealer registered under Section 15 of the Act,

  (b) [X] Bank as defined in Section 3(a)(6) of the Act,

  (c) [ ] Insurance Company as defined in Section 3(a)(19) of the Act,

  (d) [ ] Investment  Company  registered  under  Section  8 of  the  Investment
          Company Act,

  (e) [ ] Investment  Advisor  registered under Section 203
          of the Investment Advisors Act of 1940,

  (f) [ ] Employee Benefit Plan, Pension Fund which is subject to the provisions
          of the Employee  Retirement  Income  Security Act of 1974 or Endowment
          Fund; see 13d-1(b)(1)(ii)(F),

  (g) [X] Parent Holding Company, in accordance with Rule  13d-1(b)(ii)(G);  see
          Item 7,



<PAGE>


                                                          Page  7  of  16  Pages


  (h) [ ] Group, in accordance with Rule 13d-1(b)(1)(ii)(H).




<PAGE>


                                                          Page  8  of  16  Pages


Item 4.  Ownership.

         As set forth in Item 8,  the persons  filing have received  warrants to
purchase  shares of common stock of Halsey Drug Co.,  Inc. (the  "Issuer").  The
percentage  of the class of shares of common  stock of the Issuer  that would be
owned, assuming exercise of the warrants, as of December 31, 1994, was less than
five percent for each of the three persons filing.  The aggregate  percentage of
all three persons  (which  persons  disclaim that they are a group) exceeds five
percent, as set forth below.

         THE CHASE MANHATTAN CORPORATION
         (THROUGH ITS SUBSIDIARY THE CHASE MANHATTAN BANK, N.A.)

       (a)     Amount beneficially owned:

               257,261(2)

       (b)     Percent of class:

               3.1%(2)

       (c)     Number of shares as to which such person has:

         i)    Sole power to vote or to direct the vote 257,261(2),

        ii)    Shared power to vote or to direct the vote 0,
- --------
(2) The  percentage  figure is based upon the  number of shares of common  stock
said  to be  outstanding  in the  Issuer's  most  recent  filing  on  Form  10-Q
(7,609,537)  and  assumes the  exercise  of all  warrants by each of the persons
filing hereunder and the issuance of additional shares upon such exercise.

         Pursuant to the antidilution  provisions contained in the warrants, the
number of shares of the Issuer's  common stock  receivable  upon exercise of the
warrants  increases  under  certain  circumstances.   According  to  information
received from the Issuer's accountants,  which information has not been verified
by The Chase  Manhattan  Bank,  N.A.  ("Chase"),  based  upon such  antidilution
provisions and certain events occurring prior to the date hereof,  the number of
shares  receivable  upon the exercise of all of the  warrants  received by Chase
would be approximately 272,423 shares. Based upon the number of shares of common
stock said to be outstanding in the Issuer's most recent filing on Form 10-Q and
assuming  exercise of all warrants by each of the persons  filing  hereunder and
the  issuance of  additional  shares upon such  exercise,  272,423  shares would
constitute approximately 3.3% of the Issuer's common stock.



<PAGE>


                                                          Page  9  of  16  Pages



       iii)    Sole power to dispose or to direct the disposition of 257,261(2),

        iv)    Shared power to dispose or to direct the disposition of 0,

       THE BANK OF NEW YORK

       (a)     Amount beneficially owned:

               171,507(3)

       (b)     Percent of class:

               2.1%3

       (c)     Number of shares as to which such person has:

         i)    Sole power to vote or to direct the vote 171,507(3)

        ii)    Shared power to vote or to direct the vote 0,

       iii)    Sole power to dispose or to direct the disposition of 171,507(3),

        iv)    Shared power to dispose or to direct the disposition of 0,
     
- --------
(3) The  percentage  figure is based upon the  number of shares of common  stock
said  to be  outstanding  in the  Issuer's  most  recent  filing  on  Form  10-Q
(7,609,537)  and  assumes the  exercise  of all  warrants by each of the persons
filing hereunder and the issuance of additional shares upon such exercise.

                  Pursuant  to  the  antidilution  provisions  contained  in the
warrants,  the number of shares of the  Issuer's  common stock  receivable  upon
exercise of the warrants  increases  under certain  circumstances.  According to
information  received from the Issuer's  accountants,  which information has not
been  verified  by The Bank of New York  ("BNY"),  based upon such  antidilution
provisions and certain events occurring prior to the date hereof,  the number of
shares receivable upon the exercise of all of the warrants received by BNY would
be approximately 181,615 shares. Based upon the number of shares of common stock
said to be  outstanding  in the  Issuer's  most  recent  filing on Form 10-Q and
assuming  exercise of all warrants by each of the persons  filing  hereunder and
the  issuance of  additional  shares upon such  exercise  181,615  shares  would
constitute approximately 2.2% of the Issuer's common stock.



<PAGE>


                                                         Page  10  of  16  Pages


         ISRAEL DISCOUNT BANK OF NEW YORK

       (a)     Amount beneficially owned:

               171,507(4)

       (b)     Percent of class:

               2.1%(4)

       (c)     Number of shares as to which such person has:

         i)    Sole power to vote or to direct the vote 171,507(4),

        ii)    Shared power to vote or to direct the vote 0,

       iii)    Sole power to dispose or to direct the disposition of 171,507(4),

        iv)    Shared power to dispose or to direct the disposition of 0,

Item 5.  Ownership of Five Percent or Less of a Class.

         Not applicable.

- --------
(4) The  percentage  figure is based upon the  number of shares of common  stock
said  to be  outstanding  in the  Issuer's  most  recent  filing  on  Form  10-Q
(7,609,537)  and  assumes the  exercise  of all  warrants by each of the persons
filing hereunder and the issuance of additional shares upon such exercise.

                  Pursuant  to  the  antidilution  provisions  contained  in the
warrants,  the number of shares of the  Issuer's  common stock  receivable  upon
exercise of the warrants  increases  under certain  circumstances.  According to
information  received from the Issuer's  accountants,  which information has not
been  verified  by Israel  Discount  Bank of New York  ("IDB"),  based upon such
antidilution  provisions and certain events  occurring prior to the date hereof,
the  number  of  shares  receivable  upon the  exercise  of all of the  warrants
received by IDB would be approximately  181,615 shares. Based upon the number of
shares of common stock said to be outstanding in the Issuer's most recent filing
on Form 10-Q and assuming exercise of all warrants by each of the persons filing
hereunder  and the  issuance of  additional  shares upon such  exercise  181,615
shares would constitute approximately 2.2% of the Issuer's common stock.



<PAGE>


                                                         Page  11  of  16  Pages


Item 6.  Ownership of More than Five Percent on Behalf of Another Person.

         Not applicable.

Item 7.  Identification and Classification of the Subsidiary Which Acquired the
         Security Being Reported on by the Parent Holding Company.

         As to The Chase Manhattan Corporation,  this schedule is filed pursuant
to Rule 13d-  1(b)(ii)(G).  The Chase  Manhattan  Bank,  N.A. is a  wholly-owned
subsidiary  of The  Chase  Manhattan  Corporation  and is a bank as  defined  in
Section 3(a)(6) of the Act.

Item 8.  Identification and Classification of Members of the Group.

         The Chase Manhattan Corporation ("CMC") is a parent holding company and
each of The Chase Manhattan Bank, N.A.  ("Chase"),  The Bank of New York ("BNY")
and  Israel  Discount  Bank of New York  ("IDB") is a bank as defined in Section
3(a)(6)  of the Act.  CMC,  Chase,  BNY and IDB  expressly  disclaim  that  they
constitute a "group" for purposes of Section  13(d) of the Act and the Rules and
Regulations promulgated  thereunder.  Chase, BNY and IDB are parties to a Credit
Agreement,  dated as of December 22,  1992,  among  Halsey Drug Co.,  Inc.  (the
"Issuer"), Chase, BNY and IDB (such agreement, as amended from time to time, the
"Credit  Agreement").  In  connection  with  various  amendments  to the  Credit
Agreement, Chase, BNY and IDB have received warrants to purchase common stock of
the Issuer.  Such warrants,  which were received in 1994 or early 1995 (but were
all dated 1994), are the basis for this filing.

Item 9.  Notice of Dissolution of Group.

         Not applicable.





<PAGE>


                                                         Page  12  of  16  Pages


Item 10.          Certification.

                  By signing  below I certify  that, to the best of my knowledge
                  and  belief,  the  securities  referred  to  above  that  were
                  acquired by The Chase  Manhattan  Bank,  N.A. were acquired in
                  the ordinary  course of business and were not acquired for the
                  purpose  of  and  do  not  have  the  effect  of  changing  or
                  influencing  the control of the issuer of such  securities and
                  were not acquired in connection  with or as a  participant  in
                  any transaction having such purpose or effect.

                                                          SIGNATURE

         After reasonable  inquiry and to the best of my knowledge and belief, I
certify that the information  set forth in this statement is true,  complete and
correct.

                                                 THE CHASE MANHATTAN CORPORATION

                                                            10/24/95
                                                  ------------------------------
                                                              (Date)

                                                        JOHN V. CAULFIELD
                                                  ------------------------------
                                                            (Signature)

                                                       John V. Caulfield V.P.
                                                  ------------------------------
                                                           (Name/Title)


         After reasonable  inquiry and to the best of my knowledge and belief, I
certify that the information  set forth in this statement is true,  complete and
correct.

                                                  THE CHASE MANHATTAN BANK, N.A.

                                                            10/24/95
                                                  ------------------------------
                                                              (Date)

                                                        JOHN V. CAULFIELD
                                                  ------------------------------
                                                            (Signature)

                                                      John V. Caulfield V.P.
                                                  ------------------------------
                                                           (Name/Title)




<PAGE>


                                                         Page  13  of  16  Pages




                  Certification.

                  By signing  below I certify  that, to the best of my knowledge
                  and  belief,  the  securities  referred  to  above  that  were
                  acquired by The Bank of New York were acquired in the ordinary
                  course of business  and were not  acquired  for the purpose of
                  and do not have the  effect of  changing  or  influencing  the
                  control of the issuer of such securities and were not acquired
                  in  connection  with or as a  participant  in any  transaction
                  having such purpose or effect.

                                                                SIGNATURE

         After reasonable  inquiry and to the best of my knowledge and belief, I
certify that the information  set forth in this statement is true,  complete and
correct.

                                                            THE BANK OF NEW YORK


                                                            10/23/95
                                                  ------------------------------
                                                              (Date)

                                                          RICHARD MAYBAUM
                                                  ------------------------------
                                                            (Signature)

                                                       Richard Maybaum A.V.P.
                                                  ------------------------------
                                                           (Name/Title)




<PAGE>


                                                         Page  14  of  16  Pages



                  Certification.

                  By signing  below I certify  that, to the best of my knowledge
                  and  belief,  the  securities  referred  to  above  that  were
                  acquired by Israel  Discount Bank of New York were acquired in
                  the ordinary  course of business and were not acquired for the
                  purpose  of  and  do  not  have  the  effect  of  changing  or
                  influencing  the control of the issuer of such  securities and
                  were not acquired in connection  with or as a  participant  in
                  any transaction having such purpose or effect.

                                                          SIGNATURE

         After reasonable  inquiry and to the best of my knowledge and belief, I
certify that the information  set forth in this statement is true,  complete and
correct.

                                                ISRAEL DISCOUNT BANK OF NEW YORK


                                                        October 23, 1995
                                                  ------------------------------
                                                              (Date)

                                                         GEORGE S. DALLAL
                                                  ------------------------------
                                                            (Signature)

                                                       George S. Dallal, V.P.
                                                  ------------------------------
                                                           (Name/Title)


                                                         October 23,1995
                                                  ------------------------------
                                                              (Date)

                                                        R. DAVID KORNGRUEN
                                                  ------------------------------
                                                            (Signature)

                                                      R. David Korngruen A.V.P.
                                                  ------------------------------
                                                           (Name/Title)









<PAGE>

                                                         Page  15  of  16  Pages



                             JOINT FILING AGREEMENT

         In  accordance  with Rule  13d-1(f) of the  Securities  Exchange Act of
1934, as amended,  (the "Act") the persons named below agree to the joint filing
on behalf of each of them of a statement on Schedule 13G  (including  amendments
thereto)  with  respect  to common  stock of Halsey  Drug Co.,  Inc.  (including
warrants to acquire the same) and further agree that this Joint Filing Agreement
be  included  as an exhibit to such joint  filings.  Notwithstanding  this Joint
Filing  Agreement,  the persons  named below  disclaim  that they  constitute  a
"group" for  purposes  of Section  13d of the Act and the rules and  regulations
promulgated in connection  therewith.  In evidence thereof, the undersigned have
executed this Joint Filing Agreement as of the 23rd day of October, 1995.

                                                 THE CHASE MANHATTAN CORPORATION


                                                            10/24/95
                                                  ------------------------------
                                                              (Date)

                                                        JOHN V. CAULFIELD
                                                  ------------------------------
                                                            (Signature)

                                                      John V. Caulfield V.P.
                                                  ------------------------------
                                                           (Name/Title)

                                                  THE CHASE MANHATTAN BANK, N.A.


                                                            10/24/95
                                                  ------------------------------
                                                              (Date)

                                                        JOHN V. CAULFIELD
                                                  ------------------------------
                                                            (Signature)

                                                      John V. Caulfield V.P.
                                                  ------------------------------
                                                           (Name/Title)




<PAGE>


                                                         Page  16  of  16  Pages

                                                            THE BANK OF NEW YORK


                                                            10/23/95
                                                  ------------------------------
                                                              (Date)

                                                          RICHARD MAYBAUM
                                                  ------------------------------
                                                            (Signature)

                                                       Richard Maybaum A.V.P.
                                                  ------------------------------
                                                           (Name/Title)


                                                ISRAEL DISCOUNT BANK OF NEW YORK


                                                         October 23, 1995
                                                  ------------------------------
                                                              (Date)

                                                         GEORGE S. DALLAL
                                                  ------------------------------
                                                            (Signature)

                                                      George S. Dallal, V.P.
                                                  ------------------------------
                                                           (Name/Title)



                                                         October 23, 1995
                                                  ------------------------------
                                                              (Date)

                                                        R. DAVID KORNGRUEN
                                                  ------------------------------
                                                            (Signature)

                                                      R. David Korngruen A.V.P.
                                                  ------------------------------
                                                           (Name/Title)