papal,
Don't doubt the story probably just a little license in the telling, although when you look at the vertical stab, the Otter is probably quite capable.
The early Aero Commander, similarly endowed, is famously supposed to have flown back to base with the propellor from the dead engine in the cabin.
Don't try this at home folks.
For a long time light aircraft manufacturers only put two engines on the frame with the attendant issues, because they could not get a powerful enough single. They were and still are and should be dealt with as such as single engine aircraft with dispersed power.
Hence the Turboprop Caravan and PC12. My carriage of choice over any piston or turboprop twin.
The temptation for the pilot to chance his arm with a continuation of a take off is not available and concentrates his/her mind wonderfully in doing what he/she should always do, land more or less straight ahead in the least worst area in front of him/her.
Transport category aircraft are another animal altogether.