The Hat Sharpener's Kingdom

When Kermit the Frog leaves MuppeTelevision in The Jim Henson Hour episode "Power", Bean Bunny appoints himself prince and decrees storytime.

The tale that follows takes place in a kingdom whose subjects cared so little for having a king that the former monarch had become a hat sharpener. The king worked in a shop specializing in the sharpening of hats, much like his neighbors, all of whom served as their own boss.

One day, a stranger (Chris Langham) happens by the shop and asks why he's not doing any king-ing. After reminding the king that people need to be told what to do and that he's got a god-given responsibility to act king-y.

The next day, on the stranger's advice, the king puts on some colorful clothing and put a big "thing" on his head (an ornate horn), and made several proclamations. The people decided they liked being told what to do and all became slaves, and serfs, and peasants. They all lived happily ever after, until one day they blew it all up.

Citizens
Citizens of the kingdom include the king (The Hippocritic Oaf), Gil, Candle, Earl, Inkspots, Dauntless Dragon, Slithy Toves, Boo Monster, Shakey Sanchez, rats, penguins, Fish Singer, Droop, Ted, Pink Frackle, Gertha, and Jill.

An unnamed pink, feathered creature appears in this skit who made very few appearances elsewhere. She can be seen on one of the monitors in "Fitness" when Digit tells Kermit he has a cold, and rather prominently in a promotional photo with Jim Henson where she appears to be a reporter, wearing a suit and tie, and holding a microphone out for Henson.