Moral stories are a time-tested vehicle for transmitting values, yet modern NLP lacks a large, structured corpus that couples coherent narratives with explicit ethical lessons. We present TF1-EN-3M, to our knowledge the first open dataset of three million English-language fables generated exclusively by instruction-tuned models no larger than 8B parameters. Each story follows a six-slot scaffold (character -> trait -> setting -> conflict -> resolution -> moral), produced through a combinatorial prompt engine that guarantees genre fidelity while covering a broad thematic space. A fully reproducible evaluation pipeline employs a panel of open-weight LLM judges from distinct model families, scoring grammar, creativity, moral clarity, and template adherence, complemented by reference-free diversity and readability metrics. Among ten open-weight generator candidates, an 8B-parameter Llama-3 variant delivers the best quality-cost trade-off, producing high-scoring fables on consumer hardware at approximately $0.135 per 1,000 fables. We release the dataset, generation code, evaluation scripts, and full metadata under a permissive license, enabling exact reproducibility and cost benchmarking. TF1-EN-3M opens avenues for research in instruction following, narrative intelligence, value alignment, and child-friendly educational AI -- demonstrating that large-scale moral storytelling requires neither proprietary giant models nor proprietary evaluation infrastructure.