This is something I've seen called "demifiction" or "ephemerals" (though the elements of it are hardly ephemeral): in-world supplemental side-pieces, newspaper articles, books and non-fiction material. These are not necessarily stories themselves, but are supporting elements by which a story may or may not be told. These are fictional, focused on a particular setting.
Now forthwith the work!
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From "A History of Wonder Vol. 1, Saints and Demons" published 1931 by now-defunct Vichy Robber Press of London, UK and re-published 2011 by Common Sense, an imprint of Westinghouse in New York, USA, after a purchase of the original manuscripts. At the original time of publishing it was aimed at the academic market, but with the recent explosion of supers Westinghouse is marketing this series of informative volumes toward everyday nonfiction readers. Note that the phrasing is still in its original style, with the addition of editors' notes between sections and footnotes supplementing the text. The modern edition is now in its fifth printing as this work continues to grow in popularity.
Herewith in brief is the history of Saint Teratus, of Vignne in Franks land[1]. Teratus was a man born in humility -- that is, poverty -- in the 11th Century AD, who was cursed by the Devil to change shape into a horrifying beast: a serpent-like demon with wings like a bat, mane like a horse, and tail like a lion. In this form he could breathe both fire and light from his mouth and nostrils, as well as roar with a terrifying loudness which could shatter stone and brick. He bore claws and teeth as hard and sharp as steel knives, and strength enabling him to snap thick wood beams and carve stone without tools. He was able to fly through the air at the speed of a horse's full gallop, and run faster than any living thing for short distances. His birth name is not known, for he kept his identity well hidden so as to not provoke a response from the monster-hunters of his day.
Teratus was described as a gentle beast, whose manners were those of a courtly noble. He had a temper, but even when provoked kept himself under control until exactly the moment of his choosing, and never killed in rage unless provoked by deadly challenge. One strange habit he had was to collect small trinkets from persons in his care, but it is also said that Teratus was gifted by God with the power to detect at any moment the well-being of the person who had given him each item. He lived alone as a hermit, hunting deer at night and wearing sackcloth by day to hide his accursed form; but many came to his door from the surrounding villages as his innate goodness became known to the people. He learned Latin from the priests of these villages, and wrote letters to them on occasion, though only two are known to have survived, these now kept safely in the Vatican's archives.[2]
His acts include making clean a poisoned well by summoning a unicorn[3] to bless it, always feeding the hungry who came to his hermitage, always having food and drink for others in times of famine or drought, and saving many lives with his unusual physical abilities and even several miraculous healing prayers. He participated in rebuilding churches and homes after flooding and mudslides occurred in the hills around his own home in the woods in the rainy spring after an unusually wet and snowy winter. After his death, Teratus is said to have kept several of his friends from suffering the Black Plague, even when they chose to work among the dead and dying, and much later to have restarted a man's heart after he died from a chest impact in the Americas in an automobile crash; in the latter case, Teratus himself appeared from the heavens to this man, who became a devotee of the saint until his natural death some eight and a half years later despite showing no evidence of supernatural abilities himself.
It is said that praying to Teratus protects from disease, injury, and natural disaster; and can strengthen the body and mind for heavy efforts. Those with deformity are encouraged to pray to him for acceptance, while shape-changing power-wielders are told to keep him in mind at all times so they do not lose themselves to these inhuman forms nor any demonic magics or temptations they might face.
Footnotes:
[1] Vignne is not known to be a place in France (Franks' land), so we presume the original author means the Vichy region. This is not clear from any other descriptor, and there were territories held by the Franks in that period which are not part of modern France. However, there are two villages near Switzerland where the churches have an image carved in their support beams of a dragon kneeling in prayer, and the referenced letters were apparently collected from these churches.
[2] As implied by the first footnote, these descriptions are consistent with what we know of dragons in the Western European region, including the collection of unusual objects. Teratus was probably either a proper shape-shifter or someone who transformed as he aged, a disorder now called bodily teratification, meaning "monster-making".
[3] Unicorns (as well as dragons) are detailed in Vol 2, Fabulous Creatures. In short, unicorns are horse-like creatures able to make clean fouled waters and purify poisoned food and drink using their magical horns. They can also detect purity in the beings around them, and are said not to approach an impure person of any kind except to attack and destroy them.
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