I do not have a Willard Melvin Pegg in my family files, but I was able to find a Willard Pegg in the 1930 Census for Bloomsburg, Columbia Co., PA.
1930 Census for Bloomsburg:
Frank C. Pegg, Head, Rents, 48, Married at age 23, he and his parents were born in PA, General Laborer.
Daisy C., wife, 46, Married at age 21, (she was born in PA, but her parents were born in ENG)
Lulu M., dt., 22, Single, she and parents born in PA, Mill Worker at Carpet Mill
WILLARD W?, son, 13, he and parents born in PA
Arnold, son, 7, he and parents born in PA
Do you think this might be the Willard you are looking for? If so, we have his parents, but I have not been able to figure out who Frank's parents are. I looked through the 1900 census for Columbia Co., PA and I didn't find Frank living (as a son) with anyone. The 1890 census was destroyed. Frank was not born yet in 1880. He was probably living somewhere in PA in 1900 and most likely with his parents, but it will take some time to find him.
I also found Blanche Karnes (age 12) living with her parents (William N. Karnes and Emma) in 1930. I would be happy to share that census info with you. E-mail me at firstname.lastname@example.org
I also have Frank Pegg's family's census info for 1910 and 1920.
I feel pretty certain that Frank and Willard are descended from my Pegg line in that area.