Sorry, but I find that puzzling and I wonder what classes of machining the book describes though it is clearly in the professional realms, possibly having to consider very high production rates to very tight tolerances in very awkward alloys .
Yes, the tool can cut only by shearing the material, but surely if cutting steel means even a few microns thickness having to be softened, the chips at least would be momentarily incandescent, coming off rather like grinder sparks?
So assuming sharp condition, how come carbon-steel files, hacksaws, taps and tin-snips cut steel without turning up their toes at the first few slivers of swarf? All these use basically the same action – they shear the metal, and at very low speeds but relatively high "feeds" .
Modern NC machine-tools using carbide inserts of the right form and grade for the metal being worked, can operate at very high rates, but they also use very powerful floods of coolant.
Conversely I have found that "can" is not the same as "should", and carbide tips are just as happy, giving good results, at the fairly moderate speeds and feeds my second-hand ML7 is accustomed to. An HSS tool can give a better finish but there a lot of variables to consider, not least matching a carbide tool to the metal more than to the machine, or grinding a steel tool properly, and one's own skill at setting and operating a manual machine-tool.
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Going back to the original question, EN3B or its modern equivalent is amenable to most machining operations, but it is not especially free-cutting, and seems tough rather than hard. It is possible to obtain a good finish on it but not as easily as on the free-cutting grades. However, it can be welded, which is not advised for the leaded steels. (Welds in leaded steel can be brittle, I believe).