It was legal a few generations of code ago - 1980's or so???
Since you disturbed it, not right or to code now.
The 220 machine needs 2 hots and a ground.
The 120 machine needs a hot, a neutral, and a ground.
To wire both machines, you'll need 4 wires.
Sharing the nuetral & ground is wrong - we've learned that it can create energized loops that are more dangerous than not having the ground at all in the wrong situations.
You'll probably need to start at the main box & follow all the way to get it sorted out right, if you do sort it out.
You'll get a lot of advice as to whether to just leave it as it's worked this way for so long; to you will kill everyone who touches the machines next.....
To answer your question, it isn't right the way it is. What you do with that answer is up to you & your insurance company. :)
I'm just a simple dirt farmer, so if my general comments don't quite add up, I don't know it all on electric for sure myself.....
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