Once again, Ernie is the Caveman King...
...and once again, the Caveman King is kind of surly.
I think my favorite thing about this sketch is that they don't even try to explain how paper is actually made. Sherlock Hemlock, AKA the Royal Smart Person, just disappears offscreen for a few seconds and then comes back saying, "Egad! I have made paper!" much like Tom Hanks in Cast Away saying, "I have made fire!" Do you suppose the mailman's name is Wilson?
It's also funny in a heartwarming way (or heartwarming in a funny way) that Ernie, played by Jim Henson, says, "Yeah, but the man's a genius!" Takes one to know one, I guess.