I would have asked why his dog wasn't on a leash!   I'd probably done it in a really nice way like saying "not trying to sound mean or anything, but why isn't your dog on a leash?"  
 
What makes his dog so "special" to go without a leash in a park that is restricted to leashed dogs?   
So glad you thought fast enough to pull yours up by the leash to get it away from the dog that "doesn't like puppies".   
Uh, if my dog didn't like puppies, he'd certainly been leashed!   Well, my dog gets leashed anywhere they go out of my yard, anyway!  
Some folks are just plain stupid
