So it turns out I didn't need to experiment with batteries to see if they can start a fire. An incompetent shipper from Burtek did me the favour when he badly packaged a case of batteries. For some stupid reason, they did not come in the orginal cardboard case with the nice cardboard pieces separating the batteries and another nice cardboard piece on top. Instead they were packaged in a makeshift box and at some time were jostled about and two of the batteries touched terminals. The little plastic protectors came off and the batteries shorted together. But no fire. Scorching, yes, but no fire. The terminals of the batteries fried off. Nothing there but little nubs. It's likely that there wasn't enough oxygen to keep the fire going. Now had someone added an accelerant, that would be a different story.
So there you go Robert. Is fire possible if you toss the battery in the garbage without taping the terminals...... yes, but not PROBABLE. If two new batteries touching terminals doesn't start a fire inside a cardboard box stuffed with paper, it's highly doubtful a dead battery tossed into a residential garage will.
Julian