Thanks for answering my questions. The guys have given you some good info. I should add that you should never hold an end mill in your drill chuck; it is not accurate or rigid enough for that.
An R8 collet will hold most end mills quite solidly. It only requires about 30-35# of torque to lock solidly. It will be more accurate than an end mill holder.
I'm wondering if the issue isn't a combination of the wrong speed, feed rate or depth of cut. You have a good machine that should have handled a profiling cut with no problem but you need to get the speed, feed and depth of cut right and it is best to conventional mill this one. Yes, a rougher would be the best tool here but even a finishing end mill should have handled this easily. Take a look at those tables I linked to and check your cutting conditions.
JR raises a good point. Flame cut steel can harden the surface layers, making a clean cut difficult. Grinding it back is a good option, as is sawing it off. However, a good rougher and a decent depth of cut will also get past it.