The diagram shows the correct count for Surrey. On the right, the diagram shows a continuous line when making a row. Use a knitting needle or other rod to ensure even loops if you wish to create Surrey with loops on the canvas. If not, you can omit the rod and just stitch.
Start your rows on the lower part of the canvas, and work toward the top. This enables you to work without being bothered by the previous row's loops.
When you complete the area, you will give it a "hair cut" to trim the pile to the height you like. You can cut them quite short without their becoming loose.