The Last Unicorn
Continued. . .
She traveled for many, many months across strange land in search of the others.
She came to realize that men had stopped believing in the unicorn's power, and they could no longer see the horn on her head, which meant they only saw a white mare.
And then it so happened one night while she slept, a carnival caravan led by a witch named Mummy Fortuna spotted her off to the side of the road, and she instantly knew what the creature was.  Mummy Fortuna headed the Midnight Carnival, a collection of magical and legendary creatures behind cages.  She wanted the unicorn to complete the carnival, and she cast a spell on the her and gave the creature a false horn for man to see.
In Mummy Fortuna's party, there was a hunchback named Rukh who was in charge of leading the tours through the carnival and keeping the animals caged.
And then there was Schmendrick the magician, who performed trite tricks and magic card shows for the visitors and dreamed of one day freeing himself from the service of Mummy Fortuna and becoming a real magician.
Back

I know this story; send me to the movie info page.
" 'The only rope that could hold her [the unicorn],' she [Mummy Fortuna] told him, 'would be the cord with which the old gods bound the Fenris-wolf.  That one was made of fishes' breath, bird spittle, a woman's beard, the miaowing of a cat, the sinews of a bear, and one thing more.  I remember-- mountain roots.  Having none of these elements, nor dwarves to weave them for us, we'll have to do the best we can with iron bars. . .' "
Peter S. Beagle