Swee' Pea is on Popeye's lap, asking him, "How did you and Jeep learn so many tricks?" So, Popeye tells him the story of "Eugene the Jeep," a latter-day character (I think) on the Popeye cartoons, which began in the 1930s.
Bluto plays the "bad farmer" and Popeye was the "good farmer." The Jeep family lived nearby. Popeye tells of Momma teaching the Jeep kids how to "dis-capeer" and other things. Eugene was rebellious and wouldn't learn like the other little ones....but, in an emergency, did learn.
This was a lame Popeye cartoon, to be honest. I can't understand the appeal or the reason for including this Jeep character into the Popeye "family."