In March of 1891, Walter E. Pegues, after completing a two year term as Lee County's first Superintendent of Education, laid aside textbooks to help form a new Tupelo enterprise originally known as Baskin and Pegues Furniture and Undertaking Goods.  His parter, Tupelo Mayor W. C. Baskin, was affiliated with the business only a short while.

     The firm's first location was on Main Street between Spring Street and Front Street, a site later occupied by the Tupelo Theater.  In 1900 the business relocated to 203 Main Street, where it continued operation for 52 years.  In 1952, McClure Furniture Company in Tupelo purchased the furniture portion of the business and the funeral service was moved to the Pegues family home; its current Tupelo location at 535 Jefferson Street.  A son of the founder was quoted in the Tupelo Journal saying " We want to concentrate our entire efforts on our funeral profession.  We feel that we can better serve our friends by all of our personnel at our funeral home."

     After the death of Walter Pegues in 1910, W. H. Berry took over the management of the firm under the supervision of Walter's Widow, Mary Reed Pegues.  Walter's son, William E. Pegues, Sr. took over full management of the business in 1934 and along with his brother John Reed Pegues, continued until William died in 1949 and John Reed retired in 1956.

     Shortly after Willie's death, the third generation of Pegues family funeral directors was brought into the firm.  Upon completion of their funeral service education, brothers, William E. "Bill" Pegues and Leonard M. "Len" Pegues returned home to take care of the business.