Wylie is correct.
You are confusing external motor overload protection values with motor feeder overload protection values and even then it is up to 250% for inverse time trip breakers and up to 800% for instantaneous trip breakers.
I'm an EE and this is correct. Here is how it its done:
I usually size breakers between 175%-200% of the Full load current for the motors. I almost never specify instantaneous trip breakers these days. Fuses (Dual element time delay type) is 175% max. This is all in table 430.52 of the NEC.
SINGLE MOTOR APPLICATION:
Wire size is always 125% of the Full Load Current (NEC 430.22). This assumes that the motor is in a "continuous" duty application (Runs for 3 hours straight or more). I very rarely have a situation where this is not the case but most of my applications are large commercial projects. There are certain exceptions to this which I have never really used. Refer to NEC 430.22(E) and table 430.22(E).
MULTIPLE MOTOR APPLICATION:
This is probably the application here where there are two or more motors. You would size the OCPD for the largest motor the same as you would for a single motor. However the other smaller motors would be summed as 100% of the full load current of the motor (NEC 430.62). The same is true for the conductors (NEC 430.24)
Also as stated in NEC 430.6(1), motor FLA tables in the NEC shall be used over nameplate date for OCPD and conductor sizing. However multi-speed motors, and motors with lower speed and high torque use nameplate data.
So, for a 3HP motor and 1HP motor for the cooling or whatever its for:
3HP = 9.6A @ 230V 3phase (NEC Table 430.250)
1HP = 4.2A @ 230V 3phase (NEC Table 430.250)
(9.6*200%)+(4.2*100%) = 23.4A go to 25A breaker. 30A breaker is also acceptable.
(9.6*125%)+(4.2*100%) = 16.2A use #12 wire.
There are other things in the code that talk about different types of overload protection and controllers. I'm not sure what the situation is here but this where I would start.