You are correct it is a lovely story and fiction, as thanks to poster OZEB who gave us the link below.
http://www.snopes.com/glurge/teddy.asp
Still a good story with a great message.
Decades ago I experience such a situation between an apprentice and a Boss.
The whole workshop didn't believe in Paul including ME,except the Boss.
When the Boss gave him to me to teach the trade I was surprise to learn that he was indeed very smart and learnt very quickly.And his life did a big turn around when given the chance to prove himself.
The previous tradesman didn't teach him anything,hence he appeared to be dumb. Good teachers are very important to everyone.
I have never forgotten that message.
I believe I am a good tradesman and teacher. The Boss was not a tradesman but knew people. He taught me a good lesson on people skills.
So there is a lot of Teddy Stoddarts out there using different names.
