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Euthanasia is at the heart of their squabbles. I think most of it started when the two staffers were caught dumping those dogs in the dumpster. BF, IIRC, took a shot at them (they'd previously had issues with each other, but weren't made public). Was it deserved? Probably not. Anyway, when the Vick thing happened, and a million bucks was set aside for their care, PETA disagreed and slammed BF for getting a chunk of the change. Newkirk herself called it something like a high dollar retirement home, as they'd never be rehabbed in her opinion (which I also disagree with).
Ultimately, the problem is that they both violated the first rule of animal rights/welfare: never publicly criticize positive (or well-intended) actions of another organization. Ever. You will never harm another organization nor look stupid by simply shutting up. If you seek to harm the faith in or support of another organization, you ultimately put the animals they potentially help in jeopardy.
As for your question about PETA advocating euthanizing rescued fighting dogs, I believe that their opinion is that these animals can't be trusted nor rehabbed, and therefore they do advocate euthanasia for them. So, yes, the article is correct on that.
In opposition to PETA's opinion, while some can't, many can (to which I can attest). It's worth it to each individual dog to be evaluated, and a decision made on an animal by animal basis. Bear in mind, PETA isn't a rescue organization. They don't run a shelter, either. So, I think they're sort of out-of-bounds with their statements on this topic.
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