Hold you dog on his back in your lap with his head against your tummy.  Tell him to 'settle' or whatever word you want to get him to just lay there & relax.  Once he's relaxed for 20 sec or so, release him.  You can do this anytime, not just when there's a problem going on.  Reward    
Teach your dog the 'drop' or 'release' command to drop whatever he has in his mouth.  Reward.  The kids can help you practice with the dog & this gives a constructive way of getting things away from him instead of pulling & tugging.  Another way is to get him more intersted in a favorite toy so he'll trade items.        |