I agree with those who say that there should be a call placed to animal control. This pitbull is dangerous and I think she is hiding her dog. The last thing that you would want is to have this animal back home again.
I am in Ontario Canada and there is no reason here that we cant have 10 yorkies if they are taken care of properly. I can't imagine that there would be any issue with the number of wee little dogs that you have! The bottom line is that the pit bull really should be taken care of (even if that means destruction

)and the owner should be taking care of ALL the costs for Deeogi. The rule here as well is that it doesnt matter where or how a dog attacks, the owner is ALWAYS responsible for the actions of the animal. Thats is one of the reasons that I ensure that I only have animals that I can guarentee will not cause serious injury to another living creature.
I will take a look online and see if I can find out what the laws are in your area regarding number of pets so that you wont have to be afraid to call.