Thank you all for your replies. In retrospect, we should have separated them and put an immediate stop to the bad behavior. Been more forceful with the discipline. I think we were both so shocked and we weren't prepared for it. Next time we'll be ready. I also agree with SnoWa that one of them was the instigator. That would be Snickers, since Baxter basically goes along with whatever Snickers does. We're keeping a very close eye on Snickers, and plan on dealing with any signs of aggression immediately. Also, the things that Tophersmom said make a lot of sense, particularly regarding the food. This has been quite an eye-opener!
Thanks again everyone for all your help and concern. All of your input has given us a lot to think about. You guys are the best!