I would use 1045 cold rolled or Ductile Iron....
Ductile iron? no way! Totally inappropriate for that application. For a light duty milling arbor, 1144 would be just fine.I would use 1045 cold rolled or Ductile Iron....
12L14 or 1215 machine easily and are a good price; they do rust easier,though.Why not just use 12L14 for the tool post stud? More than strong enough for the application, easy to work with and cheap. A tool post stud doesn't take a lot of torque. Pretty sure Aloris uses it for their studs.
Ductile iron? no way! Totally inappropriate for that application. For a light duty milling arbor, 1144 would be just fine.