The skit began with a child crying that he was lost. He spots a policeman, and remembers that he was told to see a police officer if one is in trouble. Bits of the dialog went something like this:
Charlie: Hey Mr. Policeman...
Policeman: Why Charlie! Say Charlie, what are you doing here?
The cop explains that he's really his Uncle Louie
C: But my Uncle Louie doesn't wear big hats like that.
P: I take the hat off when you come to visit. But when I go to work I put it on.
The cop takes off the policeman's hat
C: Hmm, you do look more like Uncle Louie. But that coat, with the buttons. My Uncle Louie wears regular sweaters.
The cop takes off the uniform jacket
C: UNCLE LOUIE!! (they embrace)
P: Yessir, it's me!
C: Oh Uncle Louie, I'm so glad to see you.
C: Uncle Louie, I'm lost; can you help me find a policeman?
P: Wha... <insert closing music here>
This skit slightly confused me for a different reason. You see, my late grandfather was named Louie, but in 1970 I didn't know that. Yet at a family reunion one day, several relatives were seen calling Grandpa "Uncle Louie". Talk about deja vu.
The backdrop used in this skit was a Central Park and/or pedestrian bridge setting. I think there were square street lamps present. In any case, I believe this same background made a cameo appearance in another Muppet skit (a short bit in a sketch that included multiple Muppets in different environments.)