Misuse of ground wire as neutral return wire in old house
Here a problem where the "obvious" solution scares me, need some advice on how to best proceed. My home (built 1920 with knob and tube type wiring) has been upgraded over the years by prior owners, but in many place still has active current in the old wires, in other places it is spliced into a modern wiring. A modern (correctly wired) 100 amp service panel is supported by an old fashion subsidy panel for the 2nd floor that seems to be an old (2 wire (no ground)) design where someone has spiced in 3 to 2 fashion and tied the neutral and ground wires to the same bus. This deeply offends my sensibilities, but I have never removed it (and we did not discover it before we bought the home).
Today I noticed two dead outlets in a room that has been "upgraded" to modern 3-prong plugs. The wiring appearing at the outlet is modem. Tracing back to the service panel is not possible without destruction of walls. Upon investigation with a VM, I have 75v between black and white, and 120V between black and ground. Yep you guessed it, it appears that the bare ground wire is being used as the active return rather then the neutral. At this point God alone (and perhaps the idiot builder) knows where the neutral connects, if at all.
I could perhaps "solve" this problem by connecting the ground and neutral lines (as have already been done in other places in this home), but my first fundamental question is should such a thing ever be considered proper to do? Second, how does one document such an unorthodox condition for others? I know a much better solution is to run my own wire from the panel and sikp all this suspect stuff.