Learn English – Changing Indirect Speech to Direct Speech

The convention for converting an originally present-tense direct-speech utterance to a past-tense report (indirect speech) is that the present-tense verb in the original is 'backshifted' to past tense.

Fred insisted      "I **will**  be driving my car in the rally.  
                         ⇓
Fred insisted that he **would** be driving his car in the rally.

As you correctly discern, a reconversion from indirect to direct speech simply undoes this change.

In your Alcatraz sentence the tensed verb is simple present look; consequently, the indirect-speech version should employ a simple past:

The officer said,     “They **look**  like fugitives from Alcatraz.”  
                               ⇓
The officer said that they **looked** like fugitives from Alcatraz. 

You would employ past perfect only if the original employed present perfect.

The officer said,    “They **have** been transported to the hospital”  
                               ⇓
The officer said that they **had**  been transported to the hospital.