aggressive schnauzer

Question
I have adopted a 4 year male (neutered) schnauzer within the last month from a no kill shelter.
I have years of experience with dogs as a volunteer , pet owner and humane investigator. In all these 20+ years I have never come upon a dog with his behaviors.
He talks a lot. A low to high pitched garble that flows like a conversation. Very needy, very territorial and will sometimes BITE when verbally reprimanded for inappropriate behavior.(Especially when my 20 year old daughter is around. He is "her" dog.) Attack is a more appropriate term. As I type both of my hands are in bandages from a surprise attack 3 days ago.He snapped and I told him No then waited a moment until he seemed to relax before saying it again. That is when he tore in to me.
I am contemplating putting him down but this really goes against everything I believe in. I am afraid to return him to the shelter because I am afraid that he may go to a home with small children. I have worked with him daily since we brought him home a month ago today. I do not strike him or scream at him but work with controlled verbal commands which he seems to know and understand well. He gets positive reinforcement with snacks and/or verbally. He works very hard at trying to assert himself as a pack leader in our home with us as well as our other dog. Primarily with us. Control seems to be more important than pleasing us.
I am in Southern Illinois near St.Louis, Mo. Can you give me some advice on how to get control of this dog or someone near by that can help us with his aggression.
I need help right away or I will have to euthenise this dog.


Answer
The talking is purely schnauzer. With some, one can totally carry on a conversation.

I've been around dogs, a lot of dogs, for over 40 years now, and I have never heard of a dog that goes on the attack from a verbal reprimand. That is certainly a new, and most unpleasant, one. He is obviously extremely dominant, and that can be a tough one to work with.

Normally, I suggest obedience training as a start, but I am afraid of what this dog would do under those circumstances. I think I would be tempted to keep him in a muzzle for awhile (with supervision, of course) in case he has a few more surprises. He would be a good candidate for a Gentle Leader Headcollar, but I think I can guarantee he will fight wearing that with everything he has. (The more dominant the dog, the more they fight it.) I would leave it on him all the time as long as there is supervision.

The people around him MUST practice "Nothing in Life is Free" at all times.  http://k9deb.com/nilif.htm This is not a dog one can ever get sloppy/lazy around when it comes to asserting oneself... not for one instant.

The one thing probably in everyone's favor here is that most schnauzers respond very well to motivational training. Try him with clicker-training and make him work for every single piece of food that he wants. Make him totally dependent on you (the people in his life) for everything. No free passes for this guy! I would suggest that you call around (try your vet) and get the name of a good animal behaviorist to help you with him. You might also have his thyroid levels checked as hypothyroidism can cause aggression in some dogs.

And I totally agree that if you decide that you cannot keep him that he should be put down. This dog is a loaded gun in the wrong hands.