Of course stories are true. They just might never have happened. 

Stories engage us on many levels. They can help us to grasp Truths about ourselves, Truths in our relationship to one another and Mother Earth.

So what is 'True'? 

"... there is a lot to learn from scarecrows, lions, and tin men,
about important things like wisdom, courage, and love."
     ~ Annette Simmons (The Story Factor. Basic Books, 2006. 195.)

We may have to dig and scramble and feel and think and fumble and grow up to find the vein of Truth - -  to discover eternal verities hidden in a story.